Reasons to invest in Allegiance, page-114

Yes, it's obviously plausible that the company could become insolvent and enter voluntary administration. The SP is currently priced for failure (i.e., insolvency is the market's consensus opinion).

But not because of debt burden. It's more likely the company will simply run out of cash to fund operational losses that are incurred over the coming quarter. This will become a high probability if the company continues to experience labor problems / equipment failures / logistical snafus / mine collapses, etc. Its only one operational mishap away from disaster, imho.

Possibly it can raise a small amount of money via equity finance, but it will only be a few million dollars and the dilutive impact will be extreme. Debt seems out of the question as the company has no real assets to offer as collateral (except perhaps Short Creek or Tenas)