Reorganization


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Reorganization

Creation of a plan to restructure a debtor's business and restore its financial health.

Reorganization

The act or process of changing the terms on the assets and/or liabilities of a company. That is, a company may consolidate its debts, significantly change the size and scope of its operations, and take other measures to reduce the strain of continuing operations. Most companies reorganize either as part of a bankruptcy or as an effort to avoid it. If the company is reorganizing as part of a corporate bankruptcy, it is said to be in receivership.

reorganization

The restatement of assets to current market value along with a restructuring of liabilities and equity to reflect the reduction in asset values and negotiations with creditors. Reorganization is used as an attempt to keep a financially troubled or bankrupt firm viable. See also Chapter 11.
References in periodicals archive ?
The benefits of applying the binding contract rule are most evident in situations in which the parties to the reorganization have agreed on a fixed amount of consideration and fixed the number of acquirer shares to be used in the total consideration.
In Revenue Procedure 81-70, the IRS acknowledges that, in the event the acquired target company is widely held, it would be "time consuming, costly, and burdensome" to collect tax basis data from the target shareholders involved in a "B" reorganization.
Vencor and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 with the Court Sept.
See exhibit 1, page 80, for a review of selected quasi reorganization literature.
D'Amato, and New York City Mayor David Dinkins, are supporting Secretary Aspin's decision to postpone and review implementation of the reorganization plan.
Despite the fact that each of the merger participants is a foreign entity, the transaction nevertheless could be a statutory merger and thus a "good" type A reorganization under the new regulations, because both Z and Y are qualified participants and the transaction is not divisive.
An S corp is a Qualified S Corp if it owns 100 percent of the Qualified Subsidiary immediately after the sale or reorganization described above.
Those decisions, however, represent a shaky foundation for an elusive, yet pervasive, doctrine that permeates the Internal Revenue Code's reorganization provisions.
The IRS says the 50% test takes into consideration redemptions and other dispositions before the reorganization.
Under terms of the company's bankruptcy plan of reorganization, USG agreed to make three payments totaling $3.
In achieving reorganization status, a transaction must fit one of the reorganization types (e.
67-125,(3) the Internal Revenue Service held that legal fees for advice on the tax significance of a potential reorganization must be capitalized.