Amanda and Emilia are co-directors and members of Griffin Pty Ltd, which imports widgets from Vietnam and sells them in various hardware stores in regional NSW. Griffin has a medium-sized warehouse where it stocks goods, and from which it distributes products.

Griffin recently signed a contract to supply a large hardware store in Orange and Dubbo with widgets. So the company ordered 10 pallets of widgets from its Vietnamese supplier and also paid a substantial deposit. A shipping company who carries goods into Australia has already brought the pallets into the country and has sent their bill to Griffin.

After a couple of deliveries to the hardware store, a safety issue is discovered with the widgets and the government bans the sale of the widgets. the hardware store cancels all further orders of the widgets.

Now, Griffin has no future revenue and its remaining stock of widgets cannot be sold. The shipping company is demanding payment of its invoice; there are also several outstanding bills to the ATO, staff and other suppliers.

Amanda and Emilia do not know what to do. Is their company insolvent? If it is, what action would you advise them to take? (Maximum 325 words)

(Note: Please write the answer based on Australian law, send me relevant references, Answer in IRAC method. Many thanks in Advance)