Define liquidation

Word Origin mid 16th century: from French, from liquider ‘liquidate’, based on Latin liquidus (see liquid). What do you mean by liquidation of a company? Which creditors are paid first in a liquidation? What is the difference between liquidity and liquidation? After three years of heavy losses the company went into liquidation with debts totalling £1million.

Definition of liquidate.

In most cases, a liquidation sale is a precursor to a business closing. Once all the assets have been sol the business is shut down. In the accounting worl liquidation refers to the process of selling all of a company’s assets to generate cash to pay off creditors, or anyone the company owes money to. In economics or finance it refers to a failed company. A company that is insolvent is unable to pay its bills when they are owed.

Liquidation is the process of winding up the company. A business need not be insolvent to liquidate. DAMAGES, LIQUIDATE contracts.

When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages.

It differ from a penalty, because the latter is a forfeiture from which the defaulting party can be relieved. In other words, liquidation is the process of closing a business, paying off creditors, and giving the investors whatever is left over. An asset is by definition something one can sell and something that has a value when a company goes into liquidation. To settle a debt, claim, or obligation.

In most property liquidations, all assets in the home are cataloge priced. Liquefaction definition is - the process of making or becoming liquid. The store is having a. More example sentences ‘One month after. Just as a company may liquidate an entire subsidiary by selling it to another.

First the capital evaporates, and then the company goes into liquidation. Two other companies went into liquidation in carrying out the work. This may also be true of a period of liquidation not preceded by crisis. Mysterious addition, the liquidation of which must be left to the Hebrew scholar.

An executor is a person who assumes the duties of liquidating an estate of a deceased. When a homeowner is unable to meet the obligations of their home mortgage loan and become. Another word for liquidate. Find more ways to say liquidate, along with related words, antonyms and example phrases at Thesaurus.

Still, we refer to the fact that the dissolution of American marriages became far more common in the later 20th century.

In rare cases, solvent companies also file for liquidation. Indenture, including, but not limited to, (i) any foreclosure or forfeiture and other repossession expenses incurred with respect to such Timeshare Loan, (ii) actual commissions and marketing and sales expenses incurred by. Approval will be sought at the meeting to put the company into voluntary liquidation. Specially Serviced Mortgage Loan or REO Property (other than any REO Property related to a Non-Serviced Mortgage Loan) equal to the lesser of (1) $000and (2) the product of (x) 1. Most often, the term liquidated damages appears in a contract, and often is the title for a whole clause or section. Parties to a contract use liquidated damages where actual damages, though real, are difficult or impossible to prove.

Disposing assets to pay debts when the firm predicts quitting the business. See also: Panic selling. Farlex Financial Dictionary. It is adopted when the company is incapable of paying its obligation. So, assets are being sold.

A unanimous vote was taken to liquidate the company. Bankruptcy filed under Chapter is the most common type of bankruptcy proceeding. Sum of money (agreed-to and written into a contract) specified as the total amount of compensation an aggrieved party should get, if the other party breaches certain part (s) of the contract.