legal liquidation; court-mediated winding-up
A formal legal procedure for dissolving a company under court supervision, as opposed to out-of-court private liquidation (私的整理). Used in business and legal contexts.
See also: 私的整理
When a company goes bankrupt, it may enter legal liquidation proceedings.
私的整理が不調に終わったため、法的整理に移行した。
Because the private liquidation failed, they moved to court-mediated winding-up.