The assessment begins with a statement, as of a specific date, of all due liabilities and available funds. Bank balances, cash on hand and short-term financing that is reliably available should be compared with due amounts owed to suppliers, lenders, tax authorities and employees. Liabilities that are not yet due, are disputed or have been deferred should be listed separately, because their status affects the assessment. Expected income should be taken into account only if its timing and availability are sufficiently reliable. Repeated payment defaults, unsuccessful enforcement, blocked financing or significant liabilities that remain unpaid over an extended period may indicate existing inability to pay. A short-term liquidity shortfall must be distinguished from this, but it must be coverable by realistic and documented incoming funds. Management should keep the liquidity position, lists of due dates, bank statements and financing commitments up to date. A finding that inability to pay has already occurred must be distinguished from a forecast that inability to pay is only impending.
Inability to Pay as a Ground for a Company's Insolvency in Georgia
To assess whether a company in Georgia is unable to pay, it must be determined whether it can actually meet its due liabilities with the funds available to it. Individual late payments are not sufficient on their own; the overall picture of current liquidity is decisive.
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