Is the Labour party insolvent?

Further to my piece When is a loan not a loan? and others, I now read in The Guardian that (my emphasis):

"AFTER A year of Gordon Brown's leadership the Labour Party is in financial crisis, it emerged last night amid warnings of cutbacks that seriously threaten Labour's ability to fight the next general election.

Loyalists including the venture capitalist Sir Ronnie Cohen and the millionaire former science minister Lord Sainsbury are understood to have bailed the party out temporarily in the past few weeks - its accountants had been threatening not to sign off the accounts at the end of this month, which could have ultimately tipped the party into insolvency. Cohen is understood to have donated £100,000 while Sainsbury has pledged to underwrite certain future staff salaries.

However, Labour's new general secretary, Ray Collins, has admitted its finances remain in a 'parlous' state. The party is up to £24m in the red, with donors reluctant to give, thanks to Brown's collapse in the polls and a series of police investigations into party funding. The party is locked in what one source described as 'tortuous' attempts to defer a series of multi-million pound loans due to be repaid soon.

Insiders said that Labour now hoped to be able to cover its immediate costs, but only by leaving 'not a penny' in the bank for a general election campaign. It is relying on volunteers on the ground because it cannot afford paid staff, leaving parliamentary candidates hopelessly outgunned by Tory opponents, while party staff fear redundancies if new donors are not found...

...Party sources say one reason Labour did not field a candidate in David Davis's by-election is because it could not spare the £70,000 needed for a campaign."

Oh dear, oh dear, oh dear. It seems a sort of justice for Gordon Brown's party to suffer, as the rest of the country has, from his incompetence and lack of frugality.

As I said last month:

"Some thoughts come to mind:
Can the Labour Party meet it's debts as and when they fall due? If not, does that mean they are trading whilst insolvent?

How many times can a "loan" be rolled over before it is a donation not a loan?

The "loans" were claimed to have been made on commercial terms, have the terms been made public on any of these "loans"?

Now look out for the Labour Party suggesting that the state funding of political parties is the best solution to the "democratic deficit" in this country. They could use their large majority to get this into place before the next election and will choose to base the calculations for the funding on an average of the votes received at the last three elections so as to avoid the full impact of the coming election."