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LSDefine

Simple English definitions for legal terms

equity insolvency

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A quick definition of equity insolvency:

Equity insolvency is a situation where a company cannot pay its debts on time. This means that the company owes more money than it has. When a company is equity insolvent, it is not allowed to give any money to its shareholders. This is because the company needs to use all its money to pay off its debts first.

A more thorough explanation:

Equity insolvency is a type of insolvency where a debtor is unable to meet its obligations as they become due. This means that the debtor cannot pay their debts on time or in the usual course of business.

For example, if a company owes money to its suppliers and cannot pay them on time, it is considered to be equity insolvent. This type of insolvency prevents the company from making any distributions to its shareholders.

Another type of insolvency is balance-sheet insolvency, which occurs when a debtor's liabilities exceed its assets. This type of insolvency also prevents a corporation from making distributions to its shareholders.

It is important to note that insolvency is different from bankruptcy. Bankruptcy is a legal process that allows a debtor to restructure or eliminate their debts, while insolvency simply means that the debtor cannot pay their debts.

equity financing | equity jurisprudence

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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