Liquidation

Liquidation

1) Means to pay off debts, etc and wind up. Action of business when no longer able to meet liabilities or closing for other reasons. Voluntary form of closure (ie voluntary liquidation) with no pressure from creditors whereby assets are disposed of, etc and debts paid.

Contrasts with compulsory liquidation under pressure from creditors when return from disposal of assets may not cover debts and bankruptcy may result.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.144-145 (288 p.)