reorganization plan

(redirected from Plan of Re-Organization)
Also found in: Legal.

Reorganization Plan

In chapter 11 bankruptcy, a plan filed with bankruptcy court describing the process of how an insolvent company will change structurally to help it pay its debts and stay in business. This plan is subject to court oversight to ensure enforcement. Depending upon the specific plan, a company's original owner or managers may maintain control. Other times, the company's creditors become the new owners of the business; this especially happens when one or more creditors have had their debt completely discharged. Changes also must occur structurally, perhaps in risk management or marketing or perhaps in something more fundamental, to ensure that the bankruptcy does not repeat itself.

reorganization plan

A plan filed with a bankruptcy court judge by a company in Chapter 11 proceedings in which the disbursement of assets is stipulated. The plan must be approved by the firm's creditors and by the court. A reorganization plan results in new securities being given to creditors in trade for old securities.
References in periodicals archive ?
Moreover, the recent plan of re-organization filed by Williams Communications Group could provide WMB with additional cash proceeds of approximately $225 million later this year.
It is our intention to present our plan of re-organization to the Bankruptcy Court as quickly as possible," CFO Bill Breslin stated.
The Company announced on March 21, 2000 that it has entered into a preliminary plan of re-organization with Beijing based e-law.
The Company is pleased to announce that it has entered into a preliminary plan of re-organization with Beijing-based e-law.
OTC Bulletin Board: FPHI) announced today that the Court order confirming the Company's Plan of Re-organization became final on December 20, 1995.
TCCF is currently operating under Chapter 11 protection of the federal bankruptcy laws but plans to file a plan of re-organization with the court next week.
announced today that a Chapter 11 plan of re-organization for CF&I and its subsidiaries was filed today by CF&I with the U.