I was in this situation during the 2000 bubble burst. Many of the developers accepted equity in leiu of paychecks, and then began drinking heavily at the offic

I was in this situation during the 2000 bubble burst. Many of the developers accepted equity in leiu of paychecks, and then began drinking heavily at the office. The company in question eventually met their obligations and is still operating today. I would caution that most companies in the above scenario do not make it out alive, though.