The company may be worth less than 0, but the stock can't be (thanks to limited liability). I've seen scenarios where creditors and owners work together. In pr

The company may be worth less than 0, but the stock can't be (thanks to limited liability). I've seen scenarios where creditors and owners work together. In practice what this means is that one or two big creditors - usually friends with the owner, or unofficial partnership - get their money back, dozens of small suppliers and other unsecured creditors get shafted.