solvency issues

Solvency issues occur when a company doesn't have enough assets or resources to meet its long-term financial obligations, like paying debts or funding operations. Essentially, it means the company's liabilities (what it owes) exceed its assets (what it owns). This situation raises concerns about the company's ability to stay financially healthy and continue its activities in the future. Addressing solvency problems often requires re-evaluating finances, raising capital, or restructuring debts to restore stability and confidence among investors and lenders.