It is important that you act fast, because trading while insolvent is illegal.
The first part of the answer relates to the entity that is trading the business. It may be necessary to enter voluntary administration or liquidation if the business is being traded through a company. The problem is that the definition of insolvency (an endemic shortage of working capital) means that you can’t get out of it.
If your objective is to save a business or protect assets owned by the directors then this is a different risk to analyze. Directors of an insolvent company will want to know if the corporate veil can be pierced so they will became liable for company debts or claims.