Ann: Funding Update, page-53

I would think that balance sheet insolvency means an apparent surplus of liabilities over assets (this would occur because an asset, typically the reserves are incorrectly valued on the balance sheet due to an accounting artefact specifically it's not yet allowed to be fully valued). I think he's correctly saying that cash flow insolvency is what the court would look at in this and most cases. I doubt most of the current non professional (and maybe some of the professional) investors appreciate the fine points the court is going to judge.
It's because I appreciate his grasp of the situation I singled him out. Note I did think he went to 'all is lost' a bit earlier before though. Emotion-we're all subject to it.