If you believe what they say, it's that (at least at the moment) their cash flow is positive, but they have a lot of debt that they just aren't going to be able to pay back. That said, they restructured a few months back (maybe a year) so that they could renegotiate the terms of their debt with creditors.
I dunno how much longer EGM will be open, but I have to imagine it gets printed at some crazy low grandfathered paper rate.