From Gator328
"You asked what happens if they run out of money?
There are three potential outcomes:
1) They halt the trials until they find a new source of money via new debt or equity dilution
2) They partner with another company for a split of future revenue or agree to sell some assets
3) They file for bankruptcy and either negotiate a debt for equity swap with the existing creditors, or sell the assets in a liquidation.
Obviously the creditors would love the third scenario to play out because they could try to take control of the company for basically $35M less what has already been paid out to them via conversions.
However, the shareholders would seek to (and would have a very good case for) appointing an Official Equity Committee and/or an Examiner to force Delcath to auction off the assets if it could be proved that the company is not hopelessly insolvent (i.e., assets > liabilities).
But this is really putting the cart before the horse. With a device that is already approved in Europe, that has an SPA for approval in the USA pending trial results, that is generating revenue in Europe, etc, some large company would be willing to either partner or buy the assets entirely. Maybe not for fair market value, but there should be buyers as most of the risk is already gone.
The company has enough money to get through 2017. By then, we should have some new data. And this new data, if positive, should increase the value of the company. Anyone who wants Delcath on the cheap needs to make an offer before the data comes out. "
