The only question to my mind is whether he coughs up the loses himself or passes some of the pain to his usurious creditors. If he does the former, especially if he tries to spread the loses evenly, I'm not sure I could fault him.
Do you mean if he does the latter? If he does the former, there is no spreading of losses.
Yes. Sorry.
I don't think it's unreasonable for everyone to take a haircut.