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 ?
The Company said it believes that terminating exclusivity in order to permit the introduction of a second plan of reorganization by the secured creditors, which would propose to reduce the recovery of unsecured creditors, would only delay confirmation of a consensual plan.
Following the negotiations regarding such claims and the negotiations with the other statutory Committees, the Company intends to file with the Bankruptcy Court a plan of reorganization and proceed to confirmation in accordance with the provisions of the Bankruptcy Code, including soliciting the requisite creditor and shareholder acceptances.
The Joint Plan of Reorganization also requires Transcisco to issue 10 percent of its Common Stock to a collateral agent to be distributed pro rata to the Class F Claimants if their claims are not paid within 36 months after the Joint Plan of Reorganization is approved by the court.
confirmed a Plan of Reorganization on June 4, 1993, which became effective on June 25, 1993.
These distributions will be in addition to the recoveries contemplated by the Plan of Reorganization as originally filed.
In late May 1993, the Bankruptcy Court suspended the original hearing date of July 15, 1993, indicating that it would consider proceeding with confirmation of a plan of reorganization which had the general approval of creditors and other parties in interest in the bankruptcy case.
EST on Friday, November 20, a competing plan of reorganization proposed by the National Gypsum Company Statutory Committee of Bond and Trade Creditors appears to have been approved by only one of seven classes voting on the Committee's plan comprised of holders of the company's 15 1~2 percent Redeemable Discount Debentures.
Holders of contingent distribution rights ("CDRs") (OTCBB:CDCOR) and holders of common stock (OTCBB:CDCO), in each case issued by Comdisco pursuant to its plan of reorganization, together with the Class C-4 creditors under the plan of reorganization are potentially impacted by a termination of the litigation trust.
which owns and operates the Bally's Las Vegas casino hotel resort, announced today that its Plan of Reorganization, was confirmed by the United States Bankruptcy Court for the District of New Jersey.
Prior to Oneida's investment in America Racing, Oneida had submitted a competing plan of reorganization for Vernon Downs Raceway and through this investment Oneida has agreed not to modify its proposed plan of reorganization that was recently denied confirmation by the bankruptcy court.