Joined: 10-Apr-2003 Posts: 1161
From: Norrköping, Sweden
@Kronos
IANAL and all that but AFAIK, insolvent doesn't neccessarily have to lead to bancrupcy. As a rule of thumb, you have lost your chance to recover from insolvency when your debts exceeds the value of your assets. For as long as your assets are more worth than your debts, you are fully capable to recover by your own means and so you should, within a reasonable period of time of course. I believe this to be true also in the US.
If selling some or all of your assets gets you out of debt, why not? It's probably what will happen anyway if you don't. And what does it matter if the buyer happen to be represented by the same people as the seller if people get what they are owed? Again, this is not an uncommon business practice at all and frankly, I see no moral problems with it.
Although in case creditors are not given what they are owed because the asset sale was priced much lower than it's actual worth, now that I would agree to be, if not illegal, atleast questionable from a moral standpoint. I sincerely hope this is not the case.