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 ?
Furthermore, Mr Molale said the team was appointed co-liquidators by the master of High Court on June 30, 2019 and assumed full responsibility on August 1, 2019 over all BCL assets in liquidation and in provisional liquidation.
* If the expected liquidation is mandated under the governing documents from the entity's inception (e.g., for joint ventures or other limited-life entities), the liquidation basis is applied only if and when the approved plan differs from the one specified in the governing documents (ASC 205-30-25-3).
On or about the liquidation date, the fund will liquidate its assets and distribute cash pro rata to all remaining shareholders.
On appeal, the judge held that while the underlying claim was not extinguished upon liquidation with the consequence that, as a matter of jurisdiction, it continued to exist and was capable of being referred to adjudication.
The Reserve Bank of New Zealand (RBNZ), meanwhile, welcomed CBL's liquidation. The central bank had recommended the firm's liquidation in February because of its precarious financial condition.
"The date of liquidation will be September 3, 2018."
The legal hurdle was that the trading name Uganda Airlines would revert to the government subject to completing the liquidation process, prompting the Cabinet to seek a status update of the liquidation on the airline.Legal documents and advice of the Registrar of Companies obtained by The EastAfrican reveal that the government could not regain use of the defunct national carrier name as the process to liquidate Uganda Airlines in 2001 had remained incomplete, in part due to some missing assets.
Due to the liquidation order, ReliaMax's domestic license was rescinded.
These include clearer guidelines on the handling of cash advances and the withholding of compensation for accountable staff subject to the full liquidation of advances, consistent with COA's own recommendations," he said in a statement.
It reported an unaudited increase of $1.5 million in net assets in liquidation for the three months ended March 31, 2018, primarily due to the realization of $1.5 million on litigation and other claims activities.
22, 2017, together with all supporting documents detailing the character, basis and amount of each and every claim, either personally or by mail directly to the Insurance Commission, for consideration in the company's liquidation pursuant to pertinent provisions of the Insurance Code,' Funa said.
At the March 2012 hearing on the liquidation of Executive Life Insurance Company of New York (ELNY), the then-head of the New York Liquidation Bureau described the Liquidation Bureau as follows: