Not a lawyer but this always struck me as exaggerated.

One, the FDIC was always going to provide a meaningful fraction in days which would have covered payroll. Employees and vendors are going to understand a few days delay because of a bank failure. It's embarrassing and bad but not existential.

Two, I expect the law is written such that a payment failure for liquidity induced bankruptcy isn't going to reach directors/officers. It's California so who knows but a law that did would be very badly written.