Liquidating agreement

Posted by / 21-Nov-2017 12:19

Liquidating agreement

Liquidation is the process of bringing a business to an end and distributing its assets to claimants.

If that does not cover the debt, they will recoup the balance from the company’s remaining liquid assets, if any. These include bondholders, the government (if it is owed taxes) and employees (if they are owed unpaid wages or other obligations).Finally, shareholders receive any remaining assets, in the unlikely event that there are any.In such cases, investors in preferred stock have priority over holders of common stock.Liquidation can also refer to the process of selling off inventory, usually at steep discounts.It is not necessary to file for bankruptcy to liquidate inventory.

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Liquidation can also refer to the act of exiting a securities position.

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