"I work for an insolvent entity; we can't afford the program we have".
"If the combined companies would result in an insolvent entity, the New York lawsuit by UBS will halt the merger".
If discharge of indebtedness of insolvent entities were not actually income, there would be no need to provide an exception to its inclusion in gross income; quite simply, if discharge of indebtedness of an insolvent entity were not income, it would necessarily not be included in gross income.
In time, the bank also becomes "illiquid" – unable to borrow money, and thus make payments – because people don't like to lend to insolvent entities.
What's worse, after blaming the collapse of the companies on a "flawed business model," the plan will preserve that model indefinitely, allowing the shareholders of what are now insolvent entities to recover some value.
It would have been a different story had Fannie Mae and Freddie Mac gone insolvent, two entities China was heavily invested in, but for now they've avoided the major bank problems of the West.
The directors of Venture's largest subsidiary, Germany's Peguform Group, became so disenchanted with Winget's management that they declared this entity insolvent and put it into receivership behind his back last year.
Take a close look at Part (b) of Section 4.2, which provides that Bankruptcy means a Reference Entity... becomes insolvent or is unable to pay its debtors or fails or admits in writing in a judicial, regulatory or administrative proceeding or filing its inability generally to pay its debts as they come due.
For a while now, amid the shell-game maneuverings of finance ministers, banking chiefs, and regulators, cynics of a certain stripe have been grumbling that this or that entity is effectively insolvent, be it a megabank in America or in France, or an entire nation: Greece, Ireland, Italy.
The report said the combined entities would be insolvent if the deal went through.
For insolvent firms, either the FDIC or a Resolution Trust Corporation-type entity would restructure these firms in receivership by selling off their assets and liabilities, reappointing private management, while protecting depositors -- a process that builds off of Washington Mutual's arranged sale last year.
