I mostly agree with you, but I have one serious doubt remaining. If the company in question was so broke, how could they hire a new contractor instead of just p

I mostly agree with you, but I have one serious doubt remaining. If the company in question was so broke, how could they hire a new contractor instead of just paying the current one? That action leaves a bad taste in my mouth, I think perhaps the original developer had good reason to want more than just the money they owed him for his contract work. It looks to me like there were lies involved, at least somewhat.