What does Company status Liquidation mean?

Company status "Liquidation" refers to the process of winding up a company's affairs, where its assets are sold off to pay creditors before the company is officially dissolved. This usually occurs when a company is unable to meet its financial obligations or is insolvent. Liquidation can be voluntary, initiated by the company's shareholders, or involuntary, initiated by creditors through a court order. Once the liquidation process is complete, the company ceases to exist as a legal entity.