Liquidation \Liq`ui*da"tion\ (l[i^]k`w[i^]*d[=a]"sh[u^]n), n. [Cf. F. liquidation.]

The act or process of liquidating; the state of being liquidated.

To go into liquidation (Law), to turn over to a trustee one's assets and accounts, in order that the several amounts of one's indebtedness may be authoritatively ascertained, and that the assets may be applied toward their discharge.

Source: Webster's Revised Unabridged Dictionary (1913)