liquidation receivership of debtor
a company can’t afford to pay its debts or its directors want to wind it down in a controlled way a Liquidation is often the solution. It is the most common type of procedure for insolvent companies.
In a Liquidation a company’s assets are collected, sold and turned into cash. this is then paid back to the to creditors. After the assets are sold and the proceeds distributed the company ceases to exist.