Liquidation by assignment

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Liquidation by assignment

Sale or realization of a debtor firm's assets voluntarily agreed to by its creditors who estimate that the firm's liquidation value exceeds its going-concern value.

Liquidation by Assignment

The sale of a company's assets when it becomes apparent that the individual assets are worth more than the company itself. A company and its creditors agree when and how liquidation by assignment occurs. See also: Chapter 7 Bankruptcy.