Company Insolvency

Company insolvency occurs when a business cannot pay its debts as they become due or its liabilities exceed its assets. It indicates financial distress, making it unable to meet its financial obligations. Insolvency can lead to legal procedures such as bankruptcy or liquidation, where the company's assets are sold to settle creditors. It is a serious situation that often prompts restructuring efforts or legal intervention to manage the company's financial obligations and, in some cases, involves the end of the company's operations.