I know of a fund that called the company and I bankers to invest in March and phone call was never returned
The manger was prepared to invest up to $5 million at 50 cents mind you and to introduce the company to like minded funds. Dahlman Rose and PGRX never returned his phone call. If that isnt negligence what is.
If what you say is verified, it will be used in investor suits. This company faces millions in investor malfeasance suits and is one on the reasons that potential white knights will be hesitant to buy it. They would likely think it is better to try to just buy the assets from Karlsson after the default. It's the potential liability that might trap this company and force it into bankruptcy, even more than the land-based debt. If it weren't for that, I wouldn't hesitate to take a flyer at this price.