Technical insolvency

Technical insolvency

Default on a legal obligation of the firm. Technical insolvency occurs when a firm doesn't pay a bill on time.

Technical Bankruptcy

The state of a person or company that has defaulted on a liability and lacks the ability to pay it, but has not yet filed for bankruptcy or been declared bankrupt by a court.
References in periodicals archive ?
Keckley's gloomy forecast: "One out of four hospitals is going to be at or near technical insolvency.
7bn - could be forced to write off millions of pounds and, in some cases, could be forced into technical insolvency.
The disclosure has led to fears that colleges which have already started work on their projects will be forced to write off millions of pounds and, in some cases, could be forced into technical insolvency.
The implication is the prospect of de facto, technical insolvency for this line of business.
Analysts say while Asia suffers massive insurance overcrowding and widespread technical insolvency, issues driving consolidation in mature markets have yet to emerge in the region.
While existing stockholders should be given a reasonable period of time to correct deteriorating capital positions, the Congress should specifically provide the bank regulators with the clear authority, and therefore explicit support, to act well before technical insolvency to minimize the ultimate resolution costs.
The trustees of the Phuthuma share scheme approached Naspers and the main shareholders of M-Net/SS with a request to vest the scheme earlier than anticipated in view of the latest earnings volatility, M-Net's technical insolvency and inability to pay dividends next year.
Property work was managed by partner Adele McDermott, while technical insolvency issues were dealt with by David Cleary.
Equity investing under most scenarios should delay the technical insolvency of Social Security by between four and 14 years.
Existing stockholders should be given adequate time to correct deteriorating positions--including providing new capital--but the Congress should specifically provide the bank regulators with the clear authority, and, therefore, explicit support, to act well before technical insolvency to minimize the ultimate resolution costs.
These actions were required by Turkish law in order to prevent a technical insolvency of the company.
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