reorganization plan

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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 ?
Exall Resources Limited (TSX:EXL) held its Annual General and Special Shareholders' ("AGM") meeting in Toronto today, where all of the resolutions brought forward were approved, including the re-organization plan where the Company's gold and mining assets will be transferred to a new company to be named Gold Eagle Mines Ltd.
RCAI has now completed the first phase of a re-organization plan designed to support the ALDEROX(TM) line of products worldwide.
The reverse stock split is part of the Company's re-organization plan which is being implemented in order to finance the Company's development of its proposed vaccine.
Each shareholder of record at the close of trading on Monday, May 14, 2001 including all shares to be issued as a result of the Re-organization plan, will receive 1 share of Infotopia, Inc.
The board intends on immediately pursuing a corporate re-organization plan that will include the vending in of a new venture.
Benz anticipates filing in the near term a disclosure statement and re-organization plan that the Company believes is fair to both its creditors and shareholders and incorporate current settlement discussions being held with creditors.
13, 1995-- Consolidated Ramrod Gold Corporation is putting into effect a re-organization plan to focus on Development and Exploration of its gold resources.
dollars to further its restructuring and re-organization plans.