Yes and no.
What it means is if they've filed under Chapter 11, it means they're regrouping, pending approval of that plan by the Court and the assigned Trustee. If they don't approve, they get to re-try unless the Court or the Applicant decides there's no salvaging things afterall- at which point the case gets converted to a Chapter 7 filing. In this space, you might, if you have an inside connection, have a chance at arranging a deal (won't cost them much risks-wise, and might bring in more money...)- but otherwise you'll have the same odds as you would if they weren't int he Bankruptcy proceeding.
Chapter 7 filings are liquidation filings. This means the Trustee finds buyers or auctions off the assets of the company in question. Unless you can pony up enough cash to satisfy the Trustee, you won't get the IP rights for anything in that sale. At the end of the sale, the rights devolve to their varying respective rights-holders, much like many of Capstone/IntraCorp's titles have done.
Having said this, and looking at the announcement, they've filed for an 11 proceeding. Unless you know someone in Midway or know someone that is friendly with someone in the upper management over there you can forget it.


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