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 ?
The Oklahoma City-located oilfield services and equipment firm said its prepackaged reorganization plan has been sanctioned by the holders of the majority of its debt.
Chemtura Corporation, debtor-in-possession (Pink Sheets:CEMJQ), a manufacturer of speciality chemicals, crop protection and pool, spa and home care products, reported on Thursday the filing of its reorganization plan.
Tribune has been struggling with a reorganization plan because of warring faction among its lenders.
So, the reorganization plan must provide the measures and the ways through which the activity of the company will be redressed and how the debts can be paid by the company in a period of three years.
The company asked for and received an extension to present a reorganization plan on Nov.
The total includes at least 169 claims that have been resolved since the bankruptcy was filed in 2004, but won't be paid unless the reorganization plan is approved, according to court records.
US Airways Chairman and CEO Doug Parker said yesterday that the assumptions underlying Delta Air Lines' standalone reorganization plan are "out of whack" and that warnings of a US/DL merger being derailed by antitrust issues are "misleading" and "superficial.
The previous deadline to submit a reorganization plan was 31 March and the carrier had planned to exit bankruptcy by 30 June.
Endorsed using "super-preemptory" language to ensure that a reorganization plan did not affect insurers' rights.
368(a)(1)(D) reorganization plan, if the liabilities assumed exceed the adjusted basis of the property transferred pursuant to such exchange, such excess is a gain from the sale or exchange of a capital asset or of property that is not a capital asset, as the case may be.
Youbet's proposal is contained in a competing reorganization plan filed with the United States Bankruptcy Court in Reno, Nev.
Kmart said it will emerge from Chapter 11 later than expected due to creditors' objections to the retailer's reorganization plan.