Sounds like cash grab to me.
Agreed, UAL777flyer. That's the inherent problem with a large airline in bankruptcy...they drive down the revenue streams for everyone else as well.
Their number one priority is cash-on-hand, and the easiest way to generate an infusion of money right now is to offer deep discounts on fares. So the carrier deeply cuts fares in an attempt to stimulate sales and cash-on-hand. They don't have to worry about actually carrying those customers until whenever they're ticketed for, yet they get the money up-front.
Since the bankrupt carrier has drastically cut fares, their competitors will match to avoid losing business. This means a smaller amount of money for everyone, making this a lose-lose proposition.