From worrells.net.au: Liquidation is the process of closing a company and distributing its assets to creditors, overseen by a liquidator who resolves claims based on a defined priority order.

The order of payment includes covering liquidation costs, paying secured creditors, prioritizing employee claims, and then distributing remaining funds to unsecured creditors and shareholders.

Understanding this priority is essential for stakeholders, as insufficient funds often mean not all creditors can be fully paid.