Liquidation

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MarketWatch  May 24  Comment 
Sports Authority Holdings Inc.’s going-out-of-business sales will begin this week after a bankruptcy judge signed off on a deal with a trio of liquidators.
Yahoo  May 17  Comment 
The hedge fund manager warns of a major Chinese currency devaluation and a US recession.
The Hindu Business Line  Apr 28  Comment 
Key will be timely implementation, says Joint committee chief
MarketWatch  Apr 26  Comment 
Sports Authority to liquidate after reorganization attempt fails
Insurance Journal  Apr 25  Comment 
The New York State Department of Financial Services (DFS) announced that it has commenced a liquidation proceeding for the failed insurance cooperative Health Republic. The New York State Supreme Court will be supervise the liquidation proceeding,...
The Economic Times  Apr 24  Comment 
Finance Minister Arun Jaitley in his Budget 2016-17 speech had said NITI Aayog will identify Public Sector Units for strategic sale.
The Australian  Apr 11  Comment 
Creditors of Clive Palmer’s Queensland Nickel refinery will be urged today to plunge the business into liquidation.




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Business Liquidation

The process of selling assets for cash.

This situation generally arises when a company can no longer carry out it's business as intended, by making profits and, share holders do not have any chance of gaining from investing in the company.

The cash generated out of liquidation is usually spent on reducing debts that company own to its lenders.

For example, Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008 and now in Jan 2009, Barclay's [which took over Lehman, LEHMQ:US] is in the process of liquidating it, though Lehman has a couple of trillion dollars in assets.

Winding up would mean liquidating the assets of a corporation or partnership, settling accounts, paying bills, distributing remaining assets to shareholders or partners, and then dissolving the business. Winding up a non-profit corporation requires a plan for distribution of assets to some charitable or other non-profit entity. [1]

Investors Liquidation

Liquidation is the conversion of assets into cash by an Investor getting rid of a position in a particular type of security. [1] When Investors convert assets into cash for there own personal accounts, they may have no reason too convert, and may spend the proceeds on whatever they want, whenever they want.

Liquidation is simply the conversion of assets into cash, liquidity refers to how quickly you can convert your assets into cash. [2] For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. [3]

c.1575, "to reduce to order, to set out clearly," sense of "clear away" (a debt) first recorded 1755. The meaning "wipe out, kill" is from 1924. [2]

References

  1. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott Accounting Professor ISBN-10: 0618176519 pg 212
  2. Stock Investing for Dummies‬ By Paul Mladjenovic pg22 ISBN-10: 0470401141
  3. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. ISBN-10: 0618176519 pg212
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