Power of court in liquidation proceedings--Action by creditor

Courts of equity shall have full power to liquidate the assets and affairs of a corporation in an action by a creditor: (1) When the claim of the creditor has been reduced to judgment and an execution thereon has been returned unsatisfied and it is established that the corporation is insolvent; or (2) When the corporation has admitted in writing that the claim of the creditor is due and owing and it is established that the corporation is insolvent. Source: SL 1965, ch 24 , § 56 (2).