Yes it is. But if you think about it there's good reasons for doing it.

-Reputation. I can only assume KB's current woes are due to no new orders rolling in. If they don't fill the back orders you'll have a hornets nest of angry vocal people which won't help with getting new orders.

-If KB went bankrupt then the assets are sold to the highest bidder and creditors paid. If someone buys in providing the needed capital to move on it's much easier but I assume all debts are still legally due including people who have paid for goods not yet delivered. If they didn't deliver back orders then there's a good chance lawsuits would start rolling in. (I'll disagree with Monte here. If someone buys in then their money is on the line. No way around it. I can only assume Tim looked at what was owed and considered it manageable)

-Finally there may not be very much needed to finish many of the back orders. Unless I was lied to back in August my block is done except for sleeves, cam bearings and studs. Many others may be just as close if KB didn't have the capital or the credit to buy sleeves, bearings, studs etc to finish blocks.

This is all speculation and opinion on my part. I'm sure there is a lot more to it.

I'm also more than willing to sit tight. I don't have much choice. I just hope myself and the others with money on the line get a call sometime soon.