Receivership: related pages

Liquidation
The "winding up" of a company, so that it ceases to exist. Companies being liquidated may be insolvent, or merely ceasing operations.
Bankruptcy
A person who is insolvent (unable to pay their debts) can be declared bankrupt. This means their assets and income become, for a period, by a trustee who attempts to clear what debts they can.
Going concern principle
The assumption for the purposes of accounting or valuation, or the fact in the case of a sale, that a business will continue to operate.
Insolvent
Unable to pay debts, or having liabilities greater than assets.
Scheme of arrangement
A re-organisation of a company's financial structure, agreed between the company and either creditors or holders of securities, and approved by a court.
Copyright Graeme Pietersz © 2005-2019