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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 ?
At first glance, the rules for a complete liquidation of a partner's interest appear simple.
Even though loss severity by property type rose for many CMBS property types, the overall CMBS loss severity fell because of the high concentration of multifamily liquidations in 2005; multifamily properties generally has the lowest loss severity by property type in CMBS.
The taxpayer-favorable effects of an LR transaction are significantly lessened if the shareholder is a corporation and the liquidation, if respected, qualifies under Sec.
In addition, new section 367(e)(2) regulations affect liquidations under IRC section 332.
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.
The UAB Liquidations business model uniquely serves the interest of all clients in that we broker the sale of the client's inventory, seeking to obtain the absolute highest possible price for each item.
For more than 135 years United Auction Brokers(TM) has brokered the sale and liquidation of everything from antiques to yachts using the services of their in-house brokers.
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.
Services include auctions, reverse logistics and processing, store closure sales management, turnaround consulting, and retail liquidations of consumer merchandise through 98 outlets across North America.
The alternatives to taking immediate action to mitigate the potential losses, including long-term funding strategies, hedging strategies and partial liquidations, were felt to be inadequate in the circumstances.
The remaining assets from both liquidations will be auctioned worldwide through DoveBid's proprietary state-of-art Webcast technology in which bidders at the auction site and around the globe can compete for assets through the Internet.