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 ?
Acquisitive reorganizations: There are many reasons for pursuing a tax-free acquisitive reorganization, such as (1) increasing revenue; (2) improving financial performance (particularly if not possible through organic growth); (3) achieving economies of scale; (4) improving technological capabilities; or (5) expanding into new areas, products, or customer base.
The process was declared completed in 1973, but the commission set up for the purpose was allowed to pursue reorganization plans.
Under Letter Ruling 9252001, like-kind treatment survived both a type A reorganization and a divisive type D reorganization.
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.
Volumes of material have been generated on the macro-level, corporate-wide, reorganization experience.
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.".
In acquisition reorganization, the acquiring corporation ultimately ends up in control of the target corporation's assets or stock.
TEI urges the Standing Committee to recommend that the GST relief rules be simplified and expanded in order to eliminate the imposition of GST on transfers of property among affiliates in connection with reorganizations of corporate groups.
Because many foreign jurisdictions now have merger statutes that operate like those of the states, whereby all assets and liabilities move by operation of law, this change in the definition of an A reorganization allows such foreign transactions to qualify, for purposes of IRC section 368(a)(1)(A), as a statutory merger or consolidation if they satisfy the functional criteria applicable to transactions under domestic statutes.
If the selling shareholders receive stock in the buying corporation in consideration of their business' sale, then the selling shareholders may be able to avoid recognizing gain under the tax-free reorganization rules of Sec.
Conseco Inc.'s plan for reorganization has been approved by the court, paving the way for the company to come out of bankruptcy as an insurance-only operation.
subsidiaries (except The G&C Foundry Co., Sandusky, Ohio) have filed a voluntary petition for reorganization. The firm's Canadian and U.K.