Here's a news report that has more information concerning the Chapter 11 bankruptcy filing -
click here
I thought it was interesting that two of the creditors were the IRS and the State Board of Equalization. While we all know the former, the latter is the agency that collects sales tax in the state of California. I'm guessing that neither has much tolerance for accounts payable...
I'm not 100% certain, but it's my understanding that IRS debt will follow a person until they reach their grave - it cannot be discharged via bankruptcy.