When you say a company is ‘teetering on the edge of insolvency’ as a matter of fact then this is called careless ‘misinformation’.
The way you phrased that statement can also get you into trouble, you didn’t state ‘in your view’ ‘you believe’ ‘in your opinion’ etc.
Many things can go wrong for many companies but we don’t assume they immediately go under without thinking things through carefully.
Many options are available to the company which you did not touch on but instead went straight to insolvency.
Just because a company may not be profitable in the current environment does not mean they go into insolvency. There are many options available to the company which you did not touch on for example:
Care and maintenance.
Capital raising to settle debt
refinance debt or extend maturity
Seek funding from off-taker
Seek funding from the largest shareholders
This is really common sense stuff