👉 preliquidation is a legal concept in bankruptcy law that refers to a phase of liquidation where a company's assets are distributed among creditors. In this phase, the company may be liquidated by selling its assets and paying off some or all of the outstanding debts of creditors. This process can involve the sale of stock, bonds, or other securities held by the company, as well as making payments on loans and debts owed to creditors.
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