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 ?
ANA President and CEO Kichisaburo Nomura explained, "Under our Medium-term Corporate Plan, covering the four-year period ending March 2003, we are reorganizing ANA's international route network to boost profitability.
Alan Fishman, CEO of ContiFinancial, said, "The Chapter 11 filing is a necessary step in the process of reorganizing ContiFinancial to preserve value.
Even as we continue the process of reorganizing our company under a new plan, we will continue to grow the business around those services that meet our customers' criteria for programming excellence and our criteria for revenue and profit.
With the acquisitions that have occurred in the past six months, we are reorganizing our engineering divisions to be better positioned to react quickly to the changing needs of our core business areas, which are all very fast-moving markets," stated G.
Over the past two months, Payday management has focused on reorganizing the company's infrastructure and implementing internal controls.
BUSINESS WIRE)--March 12--Galileo Corporation (NASDAQ, NM:GAEO), today announced its plan for reorganizing and redeploying Company resources in response to the loss of its largest customer, Xerox Corporation as reported in its press release dated February 12, 1997.