The Collaborative International Dictionary of English v.0.48:

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.
   [1913 Webster]

   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.
      [1913 Webster]

WordNet (r) 3.0 (2006):

liquidation
    n 1: termination of a business operation by using its assets to
         discharge its liabilities [syn: liquidation,
         settlement]
    2: the act of exterminating [syn: extermination,
       liquidation]
    3: the murder of a competitor [syn: elimination,
       liquidation]