Even if they used to be insolvent, they should be safe now since they had such a great opportunity to buy up coins for almost nothing. If they are smart they hold the announcement that Bitcoin withdrawal resumes just a little longer to buy at a ridiculous price and ARB as much as they can. By now they should easily have made good on the 5 Million they lost last year.
No idea why anyone thinks it makes a difference if they have fiat or BTC in case MtGox goes bust. We can assume that both is lost because very likely, they have other liabilities that are senior to deposits. Should BTC withdrawal resume, you are far better off with Bitcoin OTOH.
Never underestimate the power of stupidity.