Liquidation is a term that many business owners are likely to have come across and, in some unfortunate cases, may even be familiar with. In this article, weve taken a closer look at what liquidation means, the different types of liquidation, and more.
The meaning of liquidation
Generally, the term liquidation is used to describe the process of bringing a business to an end and distributing its assets to claimants, which include creditors and shareholders. It usually occurs when a business has become insolvent and cannot pay its obligations. As operations are ceased, the companys remaining assets are distributed amongst its claimants.
According to John Cullen, Business Recovery Partner at Menzies, once a business has become insolvent, pa…
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