Liquidation Payments

Liquidation Payments In the event of the liquidation of a company as a result of bankruptcy, creditors are paid in the following order of priority: 1. Court costs and lawyers’ expenses; 2. Outstanding wages of workers; 3. Outstanding taxes; 4. Secured loans and secured debentures; 5. Creditors, i.e., suppliers to the company; 6. Preference shareholders; and finally, 7. Equity shareholders, if anything is left at all, which is rare. However, the number of listed companies going into liquidation is few

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