To really understand the problems with toxic lenders and the remaining toxic debt - one has to appreciate that this isnt a bank loan where both lender and lendee lose if company fails. With toxic lending and naked shorting - the lender wins by driving the company's stock into oblivion and essentially their ability to get attractive funding (thus relying on more toxic funding and creating the spiral). This death spiral isnt understood or known by a lot of small companies and/or they assume going in that the company WANTS them to succeed like a traditional lender. By the time they realize what is going on (ie - lenders want shares - not payback of loan) -- it is often too late to escape the spiral.

The company still has remaining toxic debt that they need to pay off/settle. Based on where the existing court case/settlement falls - it will signal the remaining lenders what they can expect. If it becomes clear they will NOT be able to do business as normal (naked shorting and increased conversions) - it will behoove them to settle quickly for cash rather than wait or deal with court costs for the same outcome. While this sucks for current shareholders in limbo - it DOES protect us from having these holders just start the death spiral upon resumption of training. So financial strength and resolution to these will be important before resumption of trading. The court cases are not on the company's time frame. Building the business/revenues are.