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Simple English definitions for legal terms
partial liquidation
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A quick definition of partial liquidation:
Partial liquidation is when a company sells some of its assets to pay off its debts, but it doesn't close down completely. It's like selling some of your toys to pay for something you owe, but you still get to keep some of your toys.
A more thorough explanation:
Partial liquidation refers to the process of selling off some of a company's assets to pay off its debts, rather than selling off all of its assets and closing down the company completely.
For example, if a company is struggling financially, it may choose to sell off some of its non-essential assets, such as property or equipment, to generate cash and pay off its creditors. This allows the company to continue operating, albeit on a smaller scale.
Partial liquidation can be a useful strategy for companies that are facing financial difficulties but still have valuable assets that can be sold to generate cash. It can also be a way to avoid bankruptcy and keep the company running.