Liquidation Plan

A liquidation plan is a strategy used by a company to wind down its operations and sell off its assets to pay creditors when it is no longer financially viable. This process typically involves evaluating the company’s assets, determining their value, and selling them, often through auctions. The funds raised are then distributed to creditors based on the priority of their claims. A liquidation plan outlines the steps to ensure the process is orderly and legal, providing clarity on how debts will be settled and what happens to remaining assets or liabilities.