Outcomes
Liquidation
Returning the trust to public shareholders when no combination closes in time.
Also written: wind-up, wind down, dissolution
The vehicle redeems 100% of the public shares at trust value, delists, and deregisters. Founder shares and warrants expire worthless.
It is the structure working as intended rather than a default. Public shareholders get their money back with interest; the sponsor loses its at-risk capital.
Related terms
Combination deadline
The date in the charter by which a combination must close, or the trust is returned.
Trust account
The segregated account holding the IPO proceeds, invested in short-dated government securities and released only on a closing or a liquidation.
Form 25-NSE
The exchange's notice removing a security from listing, which usually marks the end of a liquidation.
See the term in the wild: the screener shows trust size, per-share value and deadlines for every U.S. SPAC, and each profile links to the filings the numbers came from.
Definitions describe market practice and are not investment, legal or tax advice.