Liquidation is the process of closing down a business and halting operations due to insolvency. Often when a company is insolvent -- meaning it cannot pay its debts -- it is most prudent for the company to sell off its remaining assets in order to pay back creditors to the best of its ability. And, while the business no longer exists, the business debts still do exist. But, because there is no longer a debtor, the debt must be written off by the creditor.
The liquidation process can be governed by Chapter 7 of the U.S. Bankruptcy Code. (Chapter 11, on the other hand, is a process that includes salvaging a bankrupt company and restructuring debts.) The process can also take place out of court via an assignment for the benefit of creditors, or may be done in a less formal manner.
CMBG Advisors, acting as a trustee, assignee, or liquidating agent, is skilled in overseeing this process. In connection with liquidation services, our team has a wide network or professionals to efficiently sell assets, store records, close out financial filings, communicate with creditors, and manage all other aspects of a corporate liquidation, whether on a complete or partial basis.