Well, the correct response was "study" imo. The balance sheet wasn't real appealing, if liquidated I estimate that the common would get rougly squat.
But IMO the business isn't doing anywhere near badly enough to be liquidated in the near term. And the chapter 11 filing let them cancel a bunch of leases (along with reversing past charges taken for present value of future rent out to the end of the lease terms). Recent losses have been mainly noncash, including an immense tax charge in the most recent Q. At the very least they have plenty of reserves to reverse for instant good news in the near future. And I was betting that they could regain a positive free cash flow, at least for a few years, of 25 cents, 50 cents, or more per share. At 60 cents pps, it made sense to me. At 1.25 pps, I was willing to let someone else take on the rest of the bet.