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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


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 ?
Based upon the property closings to date and our revised estimates, as mentioned above, the Company has updated its range of estimated total cash distributions in liquidation to $5.
Hudson Capital's role in the liquidations of Tower Records and Storehouse, which together have nearly 160 locations nationwide, demonstrates our team's capacity and expertise.
Unfortunately, the IRS eschewed the certainty of Letter Ruling 200250024 and backslid into the ambiguity of Letter Ruling 200028027, by failing to indicate whether the merger would be respected as a liquidation or viewed as an upstream reorganization via Rev.
Financial results reflecting the liquidation and McCormack foreclosure action will be reported in the Company's 10-K and audited financial statements for the period ending December 31, 2006.
Apparently, the IRS concluded that (1) the new class A stock's right to participate in 20% (or on a 1:4 ratio with the new class B stock) of the "upside" of the company was participating in corporate growth significantly; and (2) the fact that the class A stock had limited rights to liquidation proceeds was inconsequential, because the likelihood of liquidation was remote.
BizAuctions' operations are designed for maximum capacity to handle most any eBay liquidation project.
If, however, as part of the same plan, A makes a check-the-box election to be treated as a disregarded entity (resulting in a deemed liquidation of A into B), the transaction would be treated as if A had transferred its assets to B in exchange for additional B shares, which were then distributed to P in the liquidation of A.
001 per share, $25,000 Liquidation Preference per share (the "Series F ARPS"), on Monday, October 30, 2006 (the "Series F Redemption Date").
The liquidation amount per share for both the Series A-3 Preferred Shares and the Series B-2 Subordinate Preferred Shares is $500,000, and there are 60 shares and 50 shares outstanding, respectively.
On audit, failing to recognize that a liquidation was in progress, the IRS attempted to treat the entire distribution, including the taxpayers' return of capital, as ordinary income under Sec.
The deemed asset sale (to the extent of the shareholder's pro rata gain allocation, if any) and the deemed liquidation (to the extent of the deemed liquidation proceeds in excess of outside shareholder stock basis) can both result in current taxable income.