> They most certainly are not sitting on all that money, it was used to fund the project.

Then declare bankruptcy and to their best to fulfill the obligations then restructure and continue. Basically he took out a loan he cannot repay, which is unfortunate but not unusual. What is unusual is telling the people you borrowed the money from “I realized I can’t pay you back and still have as much profit as I want, so I’m considering the debt to be absolved.”