Are you aware of the process of Liquidation? Liquidation also referred to as "winding up", is the process by which a company's assets are liquidated and the company closed or deregistered. Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. When a company goes into liquidation its assets are sold to repay creditors and the business closes down. The overall aim of an insolvent liquidation process is to provide a dividend for all classes of creditors, but it is often the case that unsecured creditors receive little, if any, return. Liquidation is the difference between some value of tangible assets and liabilities. The main purpose of a liquidation where the company is insolvent is to collect its assets, determine the outstanding claims against the company, and satisfy those claims in the manner and order prescribed by law.

John U

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