What advantages does the creditor gain from liquidation?

Mar 15th, 2011

1 in Banking Report

1 Answer

When insolvent companies go into liquidation, their executable property is transferred those to a neutral 3rd party custodian and is sold for the benefit of the creditors. A coordinated liquidation increases the total value of the company's assets that can be distributed to the creditors. The creditors appoint the liquidator, therefore they can be sure that the liquidation is dealt correctly.

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