The contract didn't define insolvent, it just used the word. Hyperion contend Amiga Inc were insolvent according to any reasonable person's view. which is enough in a Civil case. But if we go to what is the purpose of the clause, to protect both companies from the other's insolvency and liquidation, then it becomes fuzzy. That's why the judge is likely to split the baby in two, giving something to each party. Amiga Inc will, I expect, get the ability to distribute OS4 and quite possibly a royalty on Hyperion's sales.
If people wrote clear contracts lawyers would have nothing to do....
