Liquidating distribution

From TaxAlmanac

I am preparing a final c corporation tax return for a small corporation. The remaining assets is being distributed to one of the stockholder (74% ownership) for payment of his outstanding stockholder loans. The Distributed Asssets is about $300,000. However, the oustanding stockholder loans is $600,000. The other two stockholders has an outstanding loan too (About $16,000 each.) They are not getting anything for the debt. My question: Does this distribution qualified as a liquidation distribution to report on an 1099Div.? Does it matter that the distribution is used as payment for stockholder's loan.