Note:  the legal implication of this is reflected in a theory called "deepening insolvency."  This is that the knowing continued operation of an insolvent business operation itself creates a cause of action and this cause of action can be against the PRINCIPALS.  Basically, in this case, that would be anyone in sight with money in their pockets. 

This is the kind of cause of action that can pierce the corporate veil, or even directly go after directors and CEOs, possibly without even doing that first. 

Corporate lawyers will find this kind of cause of action very cutting edge and juicy.  Unfortunately, I'd also imagine they'd consume a lot of billable hours pursuing this very nifty, fun, edgy cause of action.

I now regret that I hate corporate law.