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what happens when a company files for insolvency on May 2nd go first Airways filed for voluntary insolvency with the national company law tribunal the air base has suspended its flights and blamed its engine manufacturer Pratt and Whitney for the financial failure but whats next first insolvency and bankruptcy are two different concepts while insolvency is more of a temporary phase bankruptcy is permanent insolvent companies either request for more time when they are only running low on liquid assets and not long-term assets or make a formal request for restructuring of it but if company fails to resolve its insolvency after taking measures it then moves to the court to formally file for bankruptcy for instance Sr Steel part of this R Group first fell into the dead trap in 2002 where it underwent corporate debt restructuring for a debt of 2800 crore rupees however the company survived and was back on track by 2006. over the years the group has either sold or let go of its most prized
