Define Liquidated

Discover the meaning of liquidated in business and finance. Learn how assets are converted into cash and debts settled. Explore examples, case studies, and statistics on liquidation.

What is Liquidated?

Liquidated is a term used in business and finance to describe the process of converting assets into cash or determining the value of a financial obligation. It is a common practice in various industries and legal contexts to settle debts, claims, or disputes.

Examples of Liquidated

  • When a company goes bankrupt, its assets are liquidated to pay off creditors.
  • In a contract, parties may agree on a liquidated damages clause to specify the amount of money to be paid in case of a breach.

Case Studies

One famous example of liquidation is the bankruptcy of Lehman Brothers in 2008. The investment bank’s assets were liquidated to pay off its debts, marking one of the largest bankruptcies in U.S. history.

Statistics on Liquidation

According to a report by the American Bankruptcy Institute, there were over 780,000 business bankruptcies filed in the United States in 2020, leading to an increase in liquidation proceedings.

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