An order made by a court for the administration of the estate of a judgment debtor or a company in financial distress, focused on debt repayment and business survival.
A term used to describe the state of a business that has failed, where all of its assets and properties are liquidated because there is no more work or business activities to conduct.
The total value of a company's assets less its liabilities, divided by the number of ordinary shares in issue. This represents the theoretical amount attributable to each share if the company was wound up.
The purchase of assets or other goods for substantially less than the fair market value. A bargain purchase can be made when the vendor is in liquidation or is otherwise financially distressed.
The process of restructuring a company that is in trouble by producing new finance to save it from liquidation, at the cost of diluting the shareholding of existing investors.
The act of ceasing trading activities within a business, including winding down operations and finalizing outstanding financial obligations.
Chapter 7 of the 1978 Bankruptcy Act focuses on liquidation, which involves the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
The Common Stock Ratio is a financial metric that represents the percentage of a company's total capitalization that is comprised of common stock. This ratio is significant as it reflects the degree of financial leverage and stability of the company from both creditor and investor perspectives.
A Company Voluntary Arrangement (CVA) is a legally binding agreement between a company and its creditors to restructure debt and avoid liquidation.
In the context of finance and economics, contraction can refer to various scenarios including the distribution of assets and economic downturns. It is important to distinguish these different contexts to understand the implications fully.
The use of various techniques to assess whether a company is likely to go into liquidation, utilizing models such as Altman's Z score and Argenti's failure model based on financial statements.
Dissolution marks the formal conclusion of a business entity, such as the cessation of a partnership or the liquidation of a company, executed through various legal mechanisms to terminate business operations.
Inability to pay one's debts when they fall due, which may lead to bankruptcy for individuals or liquidation for companies.
The Insolvency Service is an executive agency under the Department for Business, Innovation and Skills tasked with investigating and managing bankruptcies and liquidations.
A junior issue refers to a type of debt or equity that is subordinate in claim to another issue, particularly in terms of dividends, interest, principal, or security in the event of liquidation.
An individual or firm that extends money to a borrower with the expectation of being repaid, usually with interest, creating debt in the form of loans. Lenders are paid off before stockholders in the event of corporate liquidation.
To settle or determine the amount due and extinguish indebtedness. More commonly, liquidate refers to the adjustment or settlement of debts and sometimes paying off obligations.
Liquidation, also known as winding-up, refers to the process of distributing a company's assets among its creditors and members, which ultimately leads to the dissolution of the company. The process can be voluntary or court-ordered.
A person appointed to manage the winding-up process of a company, ensuring orderly asset distribution to creditors and members.
Preference occurs when an insolvent debtor favours a particular creditor, such as by paying one creditor in full, to the disadvantage of other creditors. If the debtor becomes bankrupt or goes into insolvent liquidation, the court can order restoration to ensure equitable treatment among all creditors.
A type of equity ownership in a company that entitles holders to a fixed dividend before any dividends are paid to ordinary shareholders.
A type of preferred stock that has a higher claim on assets and dividends compared to other issues of preferred stock or common stock, often referred to as preference shares.
A receiver is an individual appointed to manage the property, assets, or business operations of an entity during bankruptcy or other legal proceedings. The specific powers and duties of a receiver can vary based on the type of receivership.
Senior capital refers to the financial contributions in the form of secured loans provided to a company, which are prioritized for repayment before other types of financial claims during liquidation.
Loans or debt securities that have priority claim over junior obligations and equity on a corporation's assets in the event of liquidation.
Subordinated debt is a type of unsecured debt that can only be claimed by a creditor after the claims of secured creditors have been met, particularly in the event of a liquidation.
A trustee in bankruptcy is an individual or entity appointed to manage the property and financial affairs of a bankrupt individual or entity. The trustee's responsibilities include collecting and liquidating assets, distributing the proceeds to creditors, and ensuring that the bankruptcy process is conducted in accordance with applicable laws.
The process of liquidating a corporation, involving the collection of assets, payment of expenses, satisfaction of creditors' claims, and distribution of remaining assets to shareholders.
Winding-up is the process of dissolving a company by liquidating its assets to pay off creditors and distributing any remaining assets to shareholders.
