Tuscany International Drilling Inc T.TID

Insolvent

[pennywyse2]

People keep making the incorrect statement that TID is not insolvent it just has a "liquidity problem"

Definition of Insolvency as per Wests Encyclopedia of American Law, edition 2.

Insolvency: An incapacity to pay debts upon the day when they become due in the ordinary course of business:the condition of an individual whose property and assets are insufficient to discharge the person's debts.

Thus insolvency equals a liquidity problem.Stop contradicting yourselves in the same sentence.

[Fullblast]

But Pennywyse, TID's assets cover its debt totally, that is why it not insolvent. It has difficulty paying its bill on time, that is why it has a liquidity problem.

[pennywyse2]

Didn't you read the definition, insolvency is not being able to pay your bills on time.

[keredzz]

Your 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

[pennywyse2]

I completely disagree. The "traditional view" of insolvency means you cannot meet your obligations as they become due.  Lets try an experiment. When your next credit card bill becomes due, call your credit card company and tell them you can't pay them because you have a "liquidity problem". Let us know how you make out.

[Fullblast]

Credit card company will charge you interest. You won't go bankrupt. It's another story if you can't pay your mortgage, then your bank forecloses your house. Unless you can sell other assets to make your mortgage payment.

[pennywyse2]

Well you can call it what you want.To me they're broke and up sh*t creek without a paddle.

[RHertig]

Read what you just posted. When your property and assets are not enough to pay your debt you are insolvent. When your property and assets are enough to discharge your det but you are having a problem turning either into cash the you have a liquidity problem. You contradicted your point and proved ours. We are in a liquidity crisis.

[pennywyse2]

and a liquidity crises by legal definition equals insolvency.