Liquidation

When a company becomes insolvent this is one of the courses available. In a members´ voluntary liquidation, shareholders appoint a liquidator and the company´s assets are sold and all debts, including interest, settled within 12 months. Other methods are a creditors´ voluntary liquidation, which is initiated by shareholders, or a voluntary liquidation, which is ordered by a court. Liquidation is usually the end of the road for a company and it will then be removed from the companies´ register.
In project finance the process of disposal or sale of the project or project assets with the proceeds used to repay the project financing.
Any transaction that offsets or closes out a previously established position.The sale of the assets of a portfolio company to one or more acquirers when venture capital investors receive some of the proceeds of the sale.