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.
How Selling Shareholders Can Diversify Their Stock Holdings After the Tax-free Reorganization.
The economic landscape, with its corporate reorganizations, has highlighted the importance of the basis study to the taxpayer.
This includes restating assets to current value and making appropriate modifications to the capital accounts, such as eliminating a deficit in retained earnings to minimize the need for similar reorganizations in the future.
Typical cases of investment, acquisition and reorganization in automotive industry in recent years:
Asset drop-downs following many types of reorganizations, including statutory mergers, are allowed by Sec.
We believe that the diversity and training of our members enable us to bring an important, balanced, and practical perspective to the issues raised by the proposed regulations relating to the remote continuity-of-interest doctrine in certain tax-free reorganizations.
It is the last requirement that limits dispositions of stock acquired in a tax-free reorganization.
The goal of this Video Leadership Seminar[TM] is to provide boards of directors with critical information on bankruptcy and reorganization situations.
5) Notwithstanding the elimination of the COI and COBE requirements, F reorganizations are still subject to identity-of-interest and identity-of-asset requirements; see Rev.
Corporations that are acquired in reorganizations often must make payments to employees holding unexercised stock options in order to facilitate the transaction.
Key chapters are chapter 7 on liquidations and chapter 11 on reorganizations.