asset liquidation

USAGE SUMMARY

The phrase "asset liquidation" is correct and usable in written English.
It can be used in financial contexts to refer to the process of selling off assets to convert them into cash, often during bankruptcy or restructuring. Example: "The company announced its plans for asset liquidation to pay off its debts and stabilize its finances."

✓ Grammatically correct

News & Media

Science

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

16 human-written examples

Welcome to the world of asset liquidation, Government-style.

The New York Times

The effect is more pronounced for speculative-grade firms with a low level of asset liquidation value.

Journal of Accounting and Economics

The agency's asset liquidation division, meanwhile, is expanding far beyond the size of any other F.D.I.C. unit.

The New York Times

PAYLESS CASHWAYS INC., Lee's Summit, Mo., a building supply retailer, won approval in U.S. Bankruptcy Court to sell 15 of its stores and a distribution center as part of the company's asset liquidation.

The New York Times

And there is also what Ms. Cohn describes as an asset liquidation loan, in which lenders can qualify people who may have large bank balances and other assets but not enough income.

The New York Times

The division's growth is troubling to some, who say that the preoccupation with asset liquidation takes away from the F.D.I.C.'s primary tasks: insuring deposits at the nation's commercial banks and regulating thousands of smaller banks throughout the country.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

44 human-written examples

The combination of factors including cessation of consumption and investment, and asset liquidations, are all self reinforcing and would lead to a downward spiral".

The New York Times

The charge will reflect the effect of asset liquidations, inventory adjustments and the accrual of future fixed costs associated with the four closings as well as the effect of the consolidation.

The New York Times

Insulated from the world's capital flows, the politicians can then restructure their economies and banking systems in peace and quiet, without suffering massive forced asset liquidations.

Forbes

The term "extraordinary transactions" is generally defined to include any tender or exchange offer, merger, consolidation, acquisition, scheme, arrangement, business combination, recapitalization, reorganization, sale or acquisition of assets, liquidation, dissolution or other extraordinary transaction involving the company.

Columbia University

You also need to understand the specific assets you are pledging as security for your loan — because creditors holding liens on specific assets have liquidation preference over other creditors.

TechCrunch

Expert writing Tips

Best practice

When discussing financial difficulties or bankruptcy, use "asset liquidation" to clearly communicate the process of selling assets to repay debts. For example, "The company underwent an "asset liquidation" to satisfy its creditors".

Common error

Avoid using "asset liquidation" when simply describing normal business sales. This phrase is specifically tied to scenarios involving financial distress or bankruptcy. Instead, use terms like "sales" or "disposal" for typical transactions.

Linguistic Context

The phrase "asset liquidation" functions primarily as a noun phrase, often serving as the object of a verb or the subject of a sentence. It refers to the process of converting assets into cash, typically during financial distress. As confirmed by Ludwig AI, the phrase is correct and usable in English.

Expression frequency: Common

Frequent in

News & Media

54%

Science

20%

Academia

12%

Less common in

Formal & Business

8%

Wiki

4%

Reference

2%

Ludwig's WRAP-UP

In summary, "asset liquidation" is a well-established term referring to the process of converting assets into cash, typically during financial distress or bankruptcy. As Ludwig AI confirms, the phrase is grammatically sound and frequently used in various contexts, including news, finance, and academia. While the phrase is correct, it's vital to use it accurately to describe genuine situations of financial difficulty rather than ordinary sales. Alternatives like "selling off assets" or "divestiture of assets" can offer different nuances depending on the specific context. When writing about companies struggling with debt, use "asset liquidation" to describe the process of settling liabilities with cash generated by sales.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

converting assets to cash

Highlights the transformation of assets into a liquid form.

selling off assets

Focuses on the action of selling, emphasizing the active process of disposal.

capital liquidation

Broader term referring to the liquidation of capital holdings and resources.

divestiture of assets

Implies a formal or strategic disposal of assets, often in a business context.

realizing assets

Focuses on obtaining the value of assets, often during bankruptcy or restructuring.

asset disposal

A more general term for getting rid of assets, which can include selling, donating, or scrapping.

winding up assets

Suggests the final stages of a business or project, where assets are being converted to cash before closure.

monetizing assets

Emphasizes the goal of converting assets into a revenue stream or cash.

orderly resolution

Implies a structured and organized process of resolving financial issues, including asset sales.

portfolio runoff

Used in finance to describe the gradual reduction of a portfolio's assets through sales or maturity.

FAQs

What does "asset liquidation" mean in finance?

"Asset liquidation" refers to the process of selling a company's assets to convert them into cash, typically to pay off debts during bankruptcy or financial distress.

When is "asset liquidation" typically used?

It's generally used when a company faces bankruptcy or severe financial problems and needs to generate cash by selling its assets quickly. It could also be part of a restructuring strategy.

What's a more common way to say "asset liquidation"?

A more common way to say it is "selling off assets", which describes the same process in a less formal way.

Is "asset liquidation" the same as "bankruptcy"?

No, "asset liquidation" is a process that can occur during bankruptcy, specifically Chapter 7 bankruptcy, where the company's assets are sold to pay creditors. Bankruptcy is the overall legal process, while "asset liquidation" is a component of it.