I don't know for a fact that it is as you describe it.
But consider yourself in the position of recruiting a pilot. The pilot you're now recruiting has worked for a blacklisted airline. What does that tell you?
It tells you that he may not be so SOP oriented, might not have a sound and healthy view of what flight safety actually is.
It may also mean that that pilot can solve problems. Perhaps not according to SOP, but the problems will most likely be solved.
My effort is to avoid all contact with such an airline. If not for my career, then maybe for my family. For some reason they have a higher accident rate than other airlines and I assure you that the salary isn't worth it...
/LnS