Delcath Systems Inc (DCTH)

[Triceps22]

There is something in business law called the business judgement rule, which holds that executives cannot be held liable if they act in what they consider to be the best interest of the company.

However, to file for bankruptcy without first exploring a potential sale of assets would most likely be in violation of that rule, especially if there were offers above where the stock is currently trading at.

I don't think Dr. Simpson wants the legal issue.

Moreover, even if there was a bankruptcy, the stock would drop to around .02 or so short term but the court case would take months to play out. Because the amount of debt is so low, I would imagine it would not be hard to find a buyer for the assets the would satisfy the creditors and possible return something to the shareholders, too. In essence, it would be a forced liquidation.