Reorganization

Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

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.

Measuring COI under the binding contract rules

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.

The IRS reviews revenue procedure 81-70: the stakes for taxpayers are high

Vencor and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 with the Court Sept.

Vencor amends DIP financing, extends maturity to September

See exhibit 1, page 80, for a review of selected quasi reorganization literature.

Quasi reorganization: fresh or false start

368(a) (1) (F), a Type F reorganization is a "mere change in identity, form, or place of organization of one corporation, however effected.

Type F reorganizations and the impact of the 'Jobco Manufacturing Company' decision

D'Amato, and New York City Mayor David Dinkins, are supporting Secretary Aspin's decision to postpone and review implementation of the reorganization plan.

Building Congress supports federal decision

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.

Statutory mergers

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.

New IRS relief provisions

Those decisions, however, represent a shaky foundation for an elusive, yet pervasive, doctrine that permeates the Internal Revenue Code's reorganization provisions.

Proposed section 368 regulations (remote continuity-of-interest doctrine). (Tax Executive Institute's comments submitted to IRS on April 30, 1997)

The IRS says the 50% test takes into consideration redemptions and other dispositions before the reorganization.