Legal Definitions - partial liquidation

Partial liquidation refers to the process of selling off some of a company's assets to pay off its debts, rather than selling off all of its assets and closing down the company completely.

For example, if a company is struggling financially, it may choose to sell off some of its non-essential assets, such as property or equipment, to generate cash and pay off its creditors. This allows the company to continue operating, albeit on a smaller scale.

Partial liquidation can be a useful strategy for companies that are facing financial difficulties but still have valuable assets that can be sold to generate cash. It can also be a way to avoid bankruptcy and keep the company running.