Liquidation
The process of liquidation is when the company is wound up by a liquidator.
The company is turned into liquid asset - cash.
The assets are sold and then paid to the creditors in a specific order.
The liquidator will pay each category in full before moving on to the next.
There is normally insufficient funds to pay all the creditors
Priority on Liquidation
The liquidators fees | |
Fixed charge holders | |
Preferential Creditors | |
Floating charge holders | |
Unsecured Creditors | |
Subordinated creditors | |
Preference Shareholders | |
Ordinary Shareholders |
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