insolvent


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Insolvent

A firm that is unable to pay debts (its liabilities exceed its assets).

Insolvency

Describing a situation in which an individual or firm is unable to service its debts. This occurs when the individual or firm has a little or no cash flow, and may occur due to poor cash management. An insolvent individual or firm often declares bankruptcy, or it may arrive at an understanding with creditors in which it restructures payments.

insolvent

Unable to meet debts or discharge liabilities. Compare solvent.

insolvent

The condition that exists when (1) one's liabilities are greater than assets,so that a complete liquidation even at fair market value would not pay all debts,or (2) one's current income is not sufficient to pay current bills, resulting in the need to contribute more cash to the organization or default on some payments.

References in periodicals archive ?
Nearly 32,000 people are affected by the NCLT order as they worry their savings given to the builder for their homes will go waste if the NCLT declares the company insolvent and begins proceedings.
In the economic sphere, regarding the application of the CIRE over time it can be seen that the recovery of insolvent companies failed to come true by itself, in practice, as an effective alternative to company settlement (Portugal, 2010, 2 de dezembro).
Across the whole of England and Wales 97,900 people were declared insolvent in 2014, slightly fewer than the 99,696 who were declared insolvent in 2013.
Early Delaware opinions on this topic suggested that creditors may have standing to bring derivative litigation while a corporation was in the "zone of insolvency," before the corporation was actually insolvent. The Delaware Supreme Court has since rejected the concept of a zone of insolvency.
To look at how states in different fiscal situations behaved, we start by dividing them into three distinct groups: states that were never insolvent, states that were insolvent but managed to pay back their federal loans and did not incur the federal tax credit reduction, and states that became insolvent and ended up incurring a federal tax credit reduction.
Therefore, in such cases the insolvency administrator of a judicially insolvent debtor may claim repayment or request invalidation of security interests.
The bank said that it would not jump to the rescue of banks that found themselves insolvent following fines to settle US tax evasion probes.
Regardless of how large and complex an insolvent estate, the fact remains that each estate is a temporary assignment, and the mission of the receiver is to end that temporary assignment ASAP.
He said he had responded to the cause of insolvent prisoners as it would give them a second chance in life.
2 August 2011 - Germany-based engineering group Siemens (ETR: SIE) announced yesterday it has received a regulatory approval to take over insolvent US hearing care provider HearUSA for USD129m (EUR90.48m).
(ADPnews) - Jun 6, 2011 - Czech insolvent lottery company Sazka said on Friday it had received a CZK 200 million (USD 12m/EUR 8m) loan to finance its operations.
(ADPnews) - May 12, 2011 - Insolvent Austrian industrial holding company A-Tec Industries AG (WBAG:ATEC) reported a 57.1% annual increase in operating profit to EUR 25.3 million (USD 35.9m) for the first quarter of 2011.