Answer:

A liquidator is a person or ENTITY that liquidates something—generally assets. When assets are LIQUIDATED, they are sold on the open market for cash or other equivalents. The liquidator is legally empowered to act on behalf of the company in various capacities.

A liquidator refers to an officer who is specially appointed to wind up the affairs of a company when the company is closing—typically when the company is going bankrupt. Assets of a company are sold by the liquidator and the resulting funds are used to pay off the company's debts.

In some jurisdictions, a liquidator may also be referred to as a trustee, such as a bankruptcy trustee.

A liquidator is a person with the legal authority to act on behalf of a company to sell the company's assets before the company CLOSES in order to generate cash for a variety of reasons including debt repayment.

Liquidators are generally assigned by the court, by unsecured creditors, or by the company's shareholders. They are often employed when a company goes bankrupt. Once the liquidator is assigned, he or she then takes over control of the person or organization's assets. These are then pooled together and sold off one-by-one. Cash RECEIVED from the proceeds of the sale are then used to pay off outstanding debt held by unsecured creditors.

One of the chief functions of many liquidators is to bring and defend lawsuits. Other actions INCLUDE collecting outstanding receivables, paying off debts and finishing other corporate termination procedures.