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When a business becomes insolvent, that means that it is not able to pay its debts as they come due. While an insolvent business may be liquidated, it does not have to be liquidated.
When a business becomes insolvent, that means that it is not able to pay its debts as they come due. While an insolvent business may be reorganized, it does not have to be reorganized.
When a business becomes insolvent, that means that it is not able to pay its debts as they come due. An insolvent business may be either liquidated (the assets are sold and the proceeds distributed to creditors) or reorganized, possibly under the protection of a bankruptcy court.
When a business becomes insolvent, that means that it is not able to pay its debts as they come due. While an insolvent business may liquidate enough assets to pay its creditors, it does not have to do this.