The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy arena.

ZONE OF INSOLVENCY: A kind of "twilight zone" somewhere near actual insolvency or maybe even all the way there. In any event a very dangerous place for officers and directors of the debtor, and increasingly their professionals, where their fiduciary duties may extend to creditors as well as to the owners of the debtor. Recent Delaware jurisprudence has brought this concept into doubt, at least with respect to corporations governed by Delaware law.

See also Insolvent, Deepening Insolvency.

"The Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, and Dan Flanigan, who have a combined total of more than 110 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.