What does liquidating mean

Posted by / 10-Dec-2017 17:52

A guarantor is someone who agrees to repay the debt of a company or person if they default.If the company goes into liquidation or the person enters a personal insolvency procedure, e.g.Liquidations are far more common in bankruptcies and situations where the business is closing because it cant support itself with revenues than any other instance.

Directors are also required to help the liquidator locate the business records and assets, and to answer any questions about the company and its business.In other words, there isnt enough cash from operations to pay investors a return on their investments, so some of the business assets are sold in order to give money to the investors.Liquidation is the selling of the assets of a business, paying bills and dividing the remainder among shareholders, partners or other investors. Upon liquidation of certain business, such as a bank, a bond may be required to be posted to assure the proper distribution of assets to creditors.The liquidator takes control of all the company’s unsecured assets, which are sold to repay the creditors.Trading companies are usually closed down, although sometimes they may continue to trade for a short time so the business can be sold.

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