Totally different situation. You can't think of this "getting screwed" as employees qua employees getting screwed. These are common stock holders getting screwe

Totally different situation. You can't think of this "getting screwed" as employees qua employees getting screwed. These are common stock holders getting screwed while creditors are made whole and preferred shareholders recoup some of their investment. Employees who had been stiffed on pay are effectively the first priority creditors. Common stock is last.