LIT have to address their insolvency , the last balance sheet I...

LIT have to address their insolvency , the last balance sheet I saw showed liabilities exceed assets. due of course to the insurance provision
for the Envirostream fire. I would have expected this to have been finalised now but not to be.
Of course this situation limits LIT's funding capabilities although I note they mention VSPC as being the recipient of any funds raised for the LFP venture.

When is a Company Insolvent?

A company is insolvent if it cannot pay its debts as and when they are due. This typically stems from excessive liabilities and/or insufficient cash flow within the business.

Insolvency is a serious matter. It affects employees, creditors, shareholders, directors and other stakeholders, and it may result in the business being placed into Administration or Liquidation to help creditors recover the money they are owed.

Determining the solvency of your company can be challenging. As corporations grow, cash flow and liabilities become increasingly complex to monitor. For the purposes of Australian legislation, there are two common tests used to determine the solvency of a company:

• Cash flow assessment. A cash flow assessment examines all cash that moves into and out of the company over a specific period of time (courts typically examine cash flow over a number of months, rather than years). This includes where the cash comes from, where it goes and whether the business generates enough cash to cover its liabilities. The company is solvent if it has sufficient cash flow to pay its debts when they are due.
• Balance sheet assessment. A balance sheet assessment analyses a company’s assets, liabilities and equity at a single point in time. The company is considered solvent if its total assets outweigh its total liabilities.

When determining the solvency of a company, the courts generally consider its cash flow, balance sheet, pending prospects and overall position.

Insolvent Trading and the Corporations Act

Insolvent trading is covered by Section 588G of the Corporations Act. Section 588G states that directors have a duty to prevent insolvent trading by the company. This applies if:

• A person is the director of company at the time when the company incurs a debt; and
• The company was insolvent at the time, or if it becomes insolvent by incurring the debt; and
• There are reasonable grounds to suspect that the company is insolvent or that it would become insolvent

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really can not see any future in lieNa and the MIN venture and who in OZ would put up a $billion plus
to manufacture LFP where current demand is satisfied by China. IMO