Shutdown (Closedown, Dissolution)

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Shutdown (Closedown, Dissolution)

Portfolio company Shutdown. A cessation of operations or activity of a company or a segment of its operations. Usually, it happens when a company experiences no benefit for continuing operations, runs out of cash, or shuts down temporarily; it is the combination of output and price where the company earns just enough revenue to cover its total variable costs, hence there is no specific benefit to continuing production. When a portfolio company or asset shuts down the SPV typically no longer has a purpose and can also shut down / wind down. For a definition of the Shutdown of an SPV see Winddown.

Read more: http://www.investopedia.com/terms/s/shutdown_points.asp#ixzz4EJv1RcJ9

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