Low-Profile Bankruptcy Rings Alarms on Wall Street, as much as $2.3 billion of assets had "simply vanished."

[WSHazel]

3. I would hold off until there is more information

The tone is a bit sensationalist about stuff that happens every bankruptcy.

Claims like the ones lenders are making in this article (invoices pledged to multiple loans, assets vanished) are not normal, but also not unprecedented, as the lenders fight for seniority in the bankruptcy with each other.

There may be actual fraud by the borrower, or maybe the lenders just wrote bad loans, or maybe some of both. Lending to dodgy credit is a tough and tumble business.