reorganization

Reorganization

A process designed to revive a financially troubled or bankrupt firm. A reorganization involves the restatement of assets and liabilities, and communication with creditors in order to make arrangements for maintaining repayment.

Notes:

Reorganization is an attempt to extend the life of a company facing bankruptcy through special arrangements and restructuring in order to minimize the possibility of past situations reoccurring.

See also: Bankruptcy, Discharge in Bankruptcy, Prepackaged Bankruptcy, Write Down

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Reorganization

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

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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.