Liquidation Plans

Liquidation plans refer to strategies used by companies, typically during bankruptcy, to sell off their assets to pay debts. When a business cannot continue operating, it may choose to liquidate, meaning it will convert its assets—like inventory, equipment, and property—into cash. This cash is then distributed to creditors and stakeholders according to a prioritized system. The plan outlines how assets will be sold, the timing of sales, and the expected financial outcomes. The goal is to maximize returns for creditors while winding down the company’s operations in an orderly manner.