Its auditors judged that if the transaction went ahead the company would become technically insolvent.

ECONOMIST: The hollow bullishness of buy-out firms�� bosses

Some 90% of listed firms are technically insolvent and virtually all have stopped paying their debts.

ECONOMIST: Bankruptcy in Asia

In Britain, they can be held liable for the firm's debts if they continue operations while it is technically insolvent.

ECONOMIST: Morally bankrupt? | The

The banks, as a result, are technically insolvent.

ECONOMIST: The real leap forward

In fact, although the agency is technically insolvent (ie, its liabilities exceed its assets), it probably has enough liquidity from insurance premiums, assets acquired when taking pension schemes over and investment income from its own portfolio to meet its obligations for many years to come.

ECONOMIST: American pensions

At the same time, the ECB has apparently now said that it won't directly lend to some Greek banks that it judges to be technically "insolvent".

BBC: Greek banks, the euro and the ECB