winding up order

A winding-up order is a legal decision made by a court that ends a company's existence because it cannot pay its debts. It typically happens after creditors, such as lenders or suppliers, have tried to recover what they are owed and seek the court's help. Once the order is granted, the company’s assets may be sold to settle debts, and the company is officially closed down. This process helps ensure creditors are treated fairly and prevents companies from continuing operations while insolvent.