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|
|Floating charge holders|
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