hmm...I think this had something to do with it...
http://projects.propublica.org/recov...0120630/281295
and here page 147
http://www.mwcn.org/wp-content/uploa...on.webview.pdf
They weren't under capitalized...they were in debt, and couldnt repay their loans.
Found this too..though not sure if it's the same as the first link
http://www.fedspending.org/faads/faa...ecord_num=f500