The person I replied to specifically mentioned owing money, so I took it to mean that he wasn't talking about the investors. I do think that a business owner who is unable to pay people he owes should feel bad about it, and should make every effort to pay them back. Just because he's legally off the hook doesn't take him off the hook ethically, in my opinion.

But regardless, you should try to make your investors whole, if at all possible. I view that as your ethical responsibility as someone who receives investment.