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 ?
Under the new re-organization plan, the Elisra Group will establish a new central Operations Division, which also will include Elisra's Microwave Division.
In addition to implementing our re-organization plan, we also are in the midst of implementing a change in our organizational structure.
RCAI has now completed the first phase of a re-organization plan designed to support the ALDEROX(TM) line of products worldwide.
In addition to the $250,000, Rock Solid Broadband has arranged for $200,000 from existing Peak Speed investors to be used as collateral for an additional credit line making a total of $569,000 available (including $119,000 available in current credit lines) to fund operations of Peak Speed, as well as complete funding for the re-organization plan of Netbeam Incorporated to allow it to emerge from Chapter 11 Bankruptcy, subject to confirmation of the plan by the Court.
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.
has made a number of statements in this document about its future operations, including the re-organization plan adopted today, market prospects for acquired and existing software products, growth in potential customer orders, changes in customer demand, and our ability to comply with regulatory requirements, that represent our beliefs and expectations regarding future events.
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 leading Israeli manufacturer of advanced circuitry solutions, today announced a further stage implementation of its comprehensive re-organization plan aimed at bringing the Company's current structure and level of activity more closely in line with market conditions.
The board intends on immediately pursuing a corporate re-organization plan that will include the vending in of a new venture.
Reflecting on the tenure of President and CEO Walt Payne, who will be retire January 31, 2001, Isom told growers their return, while Payne was at the helm, beat or matched competitive returns on a streamlined re-organization plan that lowered costs and identified new market potential, including buying the world's second largest macadamia nut producer, MacFarms of Hawaii.
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.
The Company also announced that it completed a re-organization plan that includes a reverse stock split effective immediately and the appointment of a new Board of Directors.