Liquidation

Liquidation is the process of converting assets into cash or cash equivalents, typically through the sale of assets, in order to settle debts, pay creditors, and wind up the affairs of a business or organization that is insolvent or no longer viable. Liquidation can occur voluntarily by the decision of the owners or stakeholders, or involuntarily through bankruptcy proceedings initiated by creditors or legal authorities. Liquidation may involve selling assets at fair market value, distributing proceeds to creditors, and closing or dissolving the entity.