Liquidation refers to the process of converting assets into cash in order to satisfy debts or other obligations. It can also refer to the act of reducing something to its basic elements, or the state of being dissolved and no longer existing.
Usage examples
The company filed for liquidation after facing continuous financial losses and being unable to pay off its debts.
During the liquidation process, all the assets of the business were sold to repay the creditors.
The bank seized the borrower's collateral and initiated the liquidation of their property to recover the unpaid loan amount.
The liquidation of the deceased person's estate involved selling off their assets and distributing the proceeds to the beneficiaries.
After the bankruptcy declaration, the court appointed a liquidator to oversee the liquidation proceedings and ensure a fair distribution of the company's assets.
The liquidation of a mutual fund occurs when all the fund's investments are sold, and the proceeds are distributed to the investors.
The store announced a massive liquidation sale to clear out inventory before closing down permanently.
The government agency is considering the liquidation of a non-profit organization due to its failure to comply with reporting and financial regulations.
In a divorce settlement, one of the options could be the liquidation of shared assets to enable a fair division of property.
The airline faced immense financial difficulties and had to go through the process of liquidation, resulting in the termination of all employee contracts.
This is a Chapter 7 bankruptcy, which results in liquidation of assets and company closure. (gonintendo.com)
Accounting rules are designed to give the best estimate of liquidation value for debt investors, not to measure the capital used to generate returns, which is what matters to equity investors. (newconstructs.com)
A company's balance sheet does not convey exact information as to its value in liquidation, but it does supply clues or hints which may prove useful. (greenbackd.com)