Directors are obligated to prevent insolvent trading. They must...

Directors are obligated to prevent insolvent trading. They must ensure the company is solvent when a debt is incurred or not become insolvent by incurring the debt. This includes reasonable grounds for suspecting that the company is or would become insolvent.

A company is insolvent if it is unable to pay its debts as and when they become due. There are certain exceptions, including the expectation of a cash injection.

I wonder if this announcement is a gesture to the regulators and creditors that FAS is not insolvent, as trading while insolvent may open directors to personal liability for the debts.