Advanvces Unrecoverable

If a company gave Unsecured Loan(Advances) to Mr. A (not being in pursuance of any business trade agreement i.e. he was not a party to sale or "DEBTOR"). He now turns INSOLVENT. How his account should be written off?? ( I believe it cannot be written off as Bad Debt as it was never taxed as income hence no expense can be claimed henceforth)