Originally Posted by SDT
So whats the super dooper isolvent share price ?.
"Total assets" divided "by the number of shares".
Disclaimer: I'm not an MBA, so forgive me if I am using technically incorrect terminology.
Share price has nothing to do with insolvency, insolvency occurs when a company is unable to pay its bills as and when they become due. Number of other bits and pieces tie in with it but that's the basics of it.
What a significantly reduced share price and thus market capitalisation may do is breach certain banking convenants which makes loans harder to obtain, more expensive to fund or perhaps even trigger a repayment requirement. Probably unlikely in this case but not impossible.
Worst effect of reduced share prices occurs if certain people have taken out a whole lot of them, leveraged them up and then they get hit with a margin call and are forced to sell. Then it becomes a "race for the exits" as everyone tries to sell with few buyers.