So a lawyer tells them the deal is bad, they don't take it, and go bankrupt 2 years ago instead of now.
You people don't seem to realize that these are the only deals around, it's not like there are options.
It goes against human nature, just look at Kodak and AOL for example, but often the best option is to close up shop and return any capital to the owners and employees. That being said, this almost never happens. People run their business till bankruptcy hoping for a miracle turnaround.
Also, from an outsider looking in (I could be totally off base) the videogame business seems very juvenile in the way it conducts business. Both publishers and developers seem very naive. Developers think passion and good programming are all that matters and they can ignore accounting, business, legal, cost control, etc. Publishers often do the same.
Publishers also seem to enjoy driving their workforce out of business because they get them to sign onerous contracts. You win the short-term battle over sales revenue but lose the war in the long run by killing companies and burning out employees that make your revenue stream.
