RE:InsolventYour splitting hairs with your comment - people that focus on the liquidity issue - although technically a form of insolvancy - do so since that implies there is still net asset value available to the shareholders. So it is a point without much of a difference.
The traditional definition of insolvency implies a balance sheet where liabilities exceed the assets and that would suggest that the shareholders' are no longer in the game. The balance sheet assumes it is based on fair value, not GAAP, and the question then is it on a going concern basis or not. In a chapter 7 it should not be valued as such, in a reorganization perhaps the going concern valuation can still be operable if it really is a short-term liquidity issue.