liquidation

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Liquidation

The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts.

A type of proceeding pursuant to federal Bankruptcy law by which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor's creditors in satisfaction of their claims.

The settlement of the financial affairs of a business or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs, or other parties with a legal claim.

The liquidation of a corporation is not the same as its dissolution (the termination of its existence as a legal entity). Depending upon statute, liquidation can precede or follow dissolution.

When a corporation undergoes liquidation, the money received by stockholders in lieu of their stock is usually treated as a sale or exchange of the stock resulting in its treatment as a capital gain or loss for Income Tax purposes.

See: aberemurder, assassination, cancellation, composition, discharge, dispatch, dissolution, homicide, killing, murder, payment, termination

liquidation

the procedure under which a company is dissolved (or wound up). Liquidation maybe voluntary (where the company is solvent but where the purposes for which it was set up have been achieved or no longer exist) or compulsory (usually where the company is insolvent). The function of a liquidator is to convert the assets of the company into cash, which is then distributed among the creditors to pay off (so far as possible) the debts of the company. Any surplus is then distributed among the members.

LIQUIDATION. A fixed and determinate valuation of things which before were uncertain.

References in periodicals archive ?
The above discussion of the Subchapter K provisions that can apply to a liquidation of a partner is only a simple overview of a complex subject.
In both genuine contraction and retention/termination partial liquidations, neither investment gain nor interest earned on the proceeds pending distribution can be part of the distributable partial liquidation amount.
Recently, in revenue ruling 90-13, the IRS reaffirmed the notion that the deemed surrender that occurs in a pro rata distribution satisfies the redemption requirement in a partial liquidation.
Vintage 1997's high loss severity is attributable to its high concentration of hotel liquidations in 2005 (60% by securitized balance)', said Bach.
332 liquidation are the location and timing of gain on the NB asset, the reformation of T's stock basis and the separation of E&P from the business that generated such earnings.
Accordingly, the regulations provide relief similar to that provided for liquidations in the case of a downstream merger.
For gain attributable to tangible property distributed in the liquidation if it is used in a U.
Last week, Hudson Capital Partners was selected to manage the liquidation of furniture chain Storehouse, Inc.
UAB Liquidations offers all manufacturers, wholesalers, and distributors with the most effective option available for the sale and liquidation of closeouts, overstock, and discontinued merchandise and products of all kinds.
Credit concerns become more apparent at individual airports that serve as major operations centers for carriers that may be involved in potential mergers and liquidations.
CHICAGO -- Great American Group, one of the nation's leading asset management firms, has commenced the orderly liquidation for The Athlete's Foot.
The addition of two outlets expands a joint venture initially formed a year ago between Liquidation World Inc.