Asset Liquidation
/ˈæsɛt ˌlɪkwɪˈdeɪʃən/
Definitions
- (n.) The process of converting a debtor's assets into cash to satisfy creditors, often in bankruptcy or insolvency proceedings.
The court approved the asset liquidation to pay off outstanding debts.
- (n.) The voluntary sale of company assets, typically during organizational restructuring or closure, to generate liquidity.
The company undertook asset liquidation to fund its new business venture.
Forms
- asset liquidations
Related terms
See also
Commentary
Asset liquidation frequently arises in insolvency law and corporate restructuring; precise documentation and valuation are crucial to ensure compliance with creditor priorities and legal standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.