Definition of liquidate
1a (1) : to determine by agreement or by litigation the precise amount of (indebtedness, damages, or accounts) (2) : to determine the liabilities (see liability 2) and apportion assets toward discharging the indebtedness ofb : to settle (a debt) by payment or other settlement liquidate a loan
2 archaic : to make clear
3 : to do away with especially by killing was hired to liquidate a certain businessman
4 : to convert (assets) into cash liquidated his securities
1 : to liquidate debts, damages, or accounts
liquidationplay \ˌli-kwə-ˈdā-shən\ noun
Examples of liquidate in a Sentence
The owners were ordered to liquidate the company and pay their creditors.
The company is liquidating its assets.
The owners were ordered to liquidate.
The film is about a professional killer who's hired to liquidate a powerful businessman.
Recent Examples of liquidate from the Web
The attorney for Alfred Angelo Bridal Inc., Patricia Redmond, confirmed to the WZZM 13 Watchdog team the company would file for Chapter 7 bankruptcy to liquidate assets.
Police also said that Karen’s family has since filed a motion in court to freeze their marital assets, which Christopher was allegedly trying to liquidate to pay for his legal defense after her death.
Sports Authority has liquidated, and Payless has filed for bankruptcy.
Instead, the company tries to liquidate goods through its own online shop (competing with eBay listings) and remains in discussions with retailers about potential partnerships.
The textbook solution is to implement a long-term plan where portions of the stock are liquidated in a tax-advantaged manner.
This was allegedly followed by a full staff layoff and an announcement that the company's remaining assets would be liquidated.
Stung by the cuts, Miami-Dade last year liquidated more than $4.5 million in reserves of the special restaurant tax that provides local dollars for homeless programs.
Takada, whose family owns the majority stake of Takata, will step down and potentially liquidate his shares in the company.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'liquidate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of liquidate
Late Latin liquidatus, past participle of liquidare to melt, from Latin liquidus
First Known Use: circa 1575See Words from the same year
Financial Definition of LIQUIDATE
What It Is
In the financial world, to liquidate something means to sell it for cash. Although this sounds harmless, in the corporate world the term often carries a connotation of failure, because it is most often used in discussions about Chapter 7 -- a section of U.S. bankruptcy law under which companies and individuals liquidate their assets in order to repay their debts.
How It Works
Individuals, partnerships or corporations can liquidate assets. In the case of bankruptcy, when and how a borrower liquidates assets is a big deal. If all the debtor's assets are tax-exempt or subject to liens, there may not be any assets to liquidate and hence no money to distribute to creditors. If there are assets to liquidate, however, the creditors usually file a written claim so they can receive some of the proceeds. The trustee handles the liquidation and determines which creditors are paid first.
Why It Matters
The last step in the effort to repay debt in bankruptcy is usually to liquidate everything. However, the steps preceding liquidation usually involve bankruptcy, which -- at the individual level -- virtually ruins a person's credit for several years, making it very difficult and expensive to borrow money.
For businesses, liquidation usually means closing for good and selling off the assets. In the end, if a company's stock or bonds are deemed worthless by the bankruptcy court, investors might be able to deduct their losses on their tax returns.
LIQUIDATE Defined for English Language Learners
Definition of liquidate for English Language Learners
business : to sell (a business, property, etc.) especially to pay off debt
: to pay all the money owed for (a debt)
: to destroy (something) or kill (someone)
Legal Definition of liquidate
1 : to determine by agreement or litigation the precise amount of; also : to settle (a debt) by payment or other adjustment
2a : to determine the liabilities and apportion the assets of especially in bankruptcy or dissolution liquidate a corporation — compare bankruptcy b : to convert (as assets) into cash liquidate an estate
: to liquidate something (as a corporation)
liquidation\ˌli-kwə-ˈdā-shən\ play noun
Seen and Heard
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