Ann: Issue of Convertible Notes, page-24

I see where you are coming from Carna - the due date on the notes however would push it to a long term liability.
So if they have cash on hand over and above short term liabilities are they insolvent ?
Probably only if they are unable to meet ongoing commitments as they occur.

A slightly different example but still relevant - CXZ had a zillion notes, in the end they converted to shares as if they called up their notes for cash the company would have gone into liquidation. They still traded throughout this process.