You're right. SUNE could not sell assets and then declare 11 because the court would not allow any transfer of payments or assets out of the company from 90 days prior to the date of filing. Simple bkrptcy law.
When SUNE reported $1.4B in cash, how and why would they subsequently fail to fund contracts and instead fall into legal situations for lack of fulfillment? Longs should have caught that. Unfortunately I failed to see the whole picture and lost a few bucks, but it could have been much less. On the other hand, I could have made tens of thousands since I bought under $2 and could have easily sold at $5, and made a really nice profit, instead of looking for the super grandslam of $7 which I thought SUNE would hit. There's an old saying. You live and learn. And all longs should have learned a hard difficult lesson from SUNE of what seemed to be so great, really wasn't. Time to move on, ... there's ground to make up.
If they declare bankruptcy, even 11, you will have to pay what you received, as well as any other payments creditors received within 90 days of filing, back to the bankruptcy court. So good luck that they actually do not file for 90 days. And that's the law in bankruptcy court. I know, one of my companies was involved with about $240K in payments from Enron within about 35 days of their filing, and when the court determined that, we had to pay it back into the court. Just one of the reasons for that is that the debtors payments within that time frame can be construed as preferential payments, which the court will not allow.
Take the CEO first, then the CFO and Treasurer and the rest of the officers who have lied to the investors and the public regarding the company financials. This is one time I hope they all get charged in federal court and wind up in the pokey for at least ten years each. As noted in the Clint Eastwood movie, Hang'em.