A contract debt is payable at the time stipulated for payment in the contract for the purposes of the insolvency test under s 95A, unless there is evidence of an agreed extension, estoppel, or well-established course of conduct. Creditor forbearance in enforcing debts does not negative insolvency. A non-executive director cannot rely on the s 588H(3) defence where the director knew or ought to have known that management was not providing adequate financial information, and a director who turns a blind eye to a company's liquidity crisis cannot establish the defence. A release of debt under a deed of company arrangement does not extinguish the creditor's loss and damage for the purposes of s 588J where dividends do not fully repay the debt.
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