Define: Liquidation Sale

How is Liquidation Sale defined in a legal contract?

• Liquidation Sale means a large-scale sale or sales event due to which the [organization] ends its operations. It's a form of sale which involves selling a large quantity of items due to a default in priority debt documents or due to the end of business of the [organization]. Seen in 15 SEC filings
• Liquidation Sale means a series of transactions resulting in the [organization] ceasing to operate, regardless of the structure of the transactions. This term stands in contrast with a ""Restructuring"", which is a transaction or a series of transactions that result in the [organization] continuing to operate. Seen in 6 SEC filings
• Liquidation Sale means the sale of an [organization]'s inventory, furniture, fixtures, and equipment, which has been approved according to a previously determined [schedule]. Seen in 3 SEC filings
• Liquidation Sale means any sale or liquidation of collateral consented to by the [organization] in order to obtain funds to permanently repay debt in whole or in part. Seen in 2 SEC filings
• Liquidation Sale means all sales that result in the going out of business, or store closing sales conducted by the [organization] with respect to the retail inventory or any related sales of other assets of a particular [organization]. Seen in 2 SEC filings

Please note that the term ""Liquidation Sale"" excludes certain kinds of closing sales, especially those sales made with the representation that it is in anticipation of the termination of a business at its present location.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of liquidation sale' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

Liquidation Sale means the process by which an [organization] sells substantial inventory or assets due to ending operations.

Relevant Contract Type

• Asset Purchase Agreement
• Liquidation Agreement

Relevant Circumstances

• Bankruptcy of a company
• Dissolution and winding up of a company
• Acquisitions where remaining assets need to be sold

Relevant Sectors

• Retail
• Manufacturing
• Real Estate

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Genie Definition 2

Liquidation Sale means a series of transactions that result in an [organization] discontinuing operations to repay a debt.

Relevant Contract Type

• Debt Repayment Agreement
• Debt Settlement Agreement

Relevant Circumstances

• Debt Restructuring involving the sale of assets
• Non-performing loans where assets must be sold to repay debt

Relevant Sectors

• Financial Services
• Commercial Banking

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