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Reorganization Plan
(redirected from Plan of Reorganization)

   Also found in: Legal, Acronyms 0.01 sec.
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.


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The company says it continues to work with its major creditors, and anticipates that it will be in a position to file a Plan of Reorganization, Arrangement or Compromise in Canada and a Plan of Reorganization in the United States by the end of April.
The finalization of the CE plan of reorganization clears the way for asbestos claimants to receive payments from the trust to be set up in accordance with the plan of reorganization once it becomes effective.
The company intends to file a plan of reorganization to implement the agreed restructuring in the near term.
 
 
 
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