With the line of credit and the cash on hand, not to mention turning over the entire inventory i doubt going insolvent will be an issue this quarter or for a few more. Yet, they will have to stop bleeding soon.
you can go BK without debt, it is called going insolvent. you don't have enough cash on hand to pay things like suppliers, employees, etc. if ocz is working in a negative cash flow (they are now) sooner or later they won't be able to pay them.
this why i keep on saying margins count more then revenue, but you all never listen.