Plan for reorganization


Also found in: Legal.

Plan for reorganization

A plan for reorganizing a firm during the Chapter 11 bankruptcy process.

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.
References in periodicals archive ?
There can be no successful reorganization until the creditors committee is satisfied with the plan for reorganization that is filed.
has filed a joint liquidating plan for reorganization with certain lenders of Big V Supermarkets Inc., which filed for Chapter 11 bankruptcy protection in November 2000.
The Ashland, Ky.-based company planned to present the court with a pre-packaged plan for reorganization that would shift control of the company from the Addington family of eastern Kentucky to AEI's largest creditors.
Now the council has 90 days to come up with a plan for reorganization; meanwhile, Amtrak itself must develop a liquidation strategy.
BOCA RATON, Fla.-Levitz Furniture has paid off $58.4 million in debt, hired an advertising agency to help relaunch the brand and filed its plan for reorganization in U.S.

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