reorganization plan

(redirected from Plan of Reorganization)
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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 ?
Comdisco intends to oppose the motion on the basis that it is inconsistent with the plan of reorganization approved by its constituents through the bankruptcy process.
Pursuant to Comdisco's plan of reorganization and restrictions contained in its certificate of incorporation, Comdisco is specifically prohibited from engaging in any business activities inconsistent with its limited business purpose.
The terms of Anchor's Plan of Reorganization call for a debt-for-equity swap that will give Anchor's Senior Secured Noteholders 100 percent of the company's equity.
A hearing on confirmation of the Plan of Reorganization currently is scheduled for June 15 and 16, 2006.
The Plan of Reorganization and the Disclosure Statement and any exhibits, when filed, will be available on the company's web site, www.
In addition, the modified plan of reorganization revises the proposed arrangements under which different groups of asbestos claimants would share in the insurance proceeds and other assets of the trust to be formed to pay asbestos claims against Congoleum and the procedures the trust would follow for payment of claims.
Readers should refer to the plan of reorganization and disclosure statement for additional details.
5 million dollars in new debentures to enable ECG to structure a plan of reorganization that would be accepted by its creditors and approved by the bankruptcy court.
ECG's plan of reorganization called for the company to reverse split its stock 1-for-1000.
5 million dollars in new debentures to enable ECG to structure a plan of reorganization that was accepted by its creditors and approved by the bankruptcy court.
The Plan of Reorganization calls for the company to reverse split its stock 1-for-1000.