[irjustin]

It's severance where most of the misunderstanding is.

But yes this grandparent post is mostly correct. If severance was not built in to any loan contact (it never is). Then creditors are paid first.

It would be interesting to know how much debt they have vs remaining cash and when did it dip below.

Paying severance is extremely low probably even below equity since there's no legal requirement to pay severance.