The process of winding up the affairs of a company or business by determining (or fixing) the liabilities and applying all assets as far as possible in the discharge of these liabilities. Simply, it's the company termination or liquidation procedure - and there isn't usually a surplus! Called Chapter 7 in the USA
Worse than 'insolvency', 'administration' and 'receivership'. This is the funeral process for companies. The entity has died and the Liquidator is scratching round to pay off the debts and give any surplus to the grieving relatives (creditors). Surpluses after debts and fees are extremely rare.