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 ?
Finally, the Congressional Budget Office would be required to prepare a financial analysis of any reorganization plan submitted to the Congress under S.
The companies say that if purchase negotiations "are not concluded in a timely manner," Hawker will proceed with its bankruptcy reorganization plan, through which the company hopes to emerge "as a standalone entity with a more focused portfolio of aircraft."
Judicial reorganization is a set of rules laid down by the law which intends the payment of debts through a reorganization plan or the planned liquidation of assets to settle liabilities under judicial control.
David Roeder of the Chicago Sun-Times reported that sources familiar with Tribune's bankruptcy said that two investment banks owed $8.6 billion are drafting up a reorganization plan that could allow them to sell the company's newspaper and broadcast assets.
The deal is also tied to a reorganization plan for Oneida, which filed for bankruptcy in March.
Ginowan Mayor Yoichi Iha, who won the mayoral election for the first time in April last year with a campaign pledge to realize the return in five years, plans to visit Washington this year to directly urge the government and Congress to include the Futenma base in the reorganization plan.
(Bethesda, MD) chairman and chief executive officer Vance Coffman announced a reorganization plan to the company's board of directors last month.
Do the stock prices of bankrupt firms reflect the provisions of their reorganization plans? If the market price is higher than the allocation provided under the plan, is this price warranted?
YOUNGSTOWN, Ohio - A federal bankruptcy court judge here has approved a reorganization plan for Phar-Mor Inc., setting the stage for the deep-discount drug chain to return to the ranks of publicly traded companies.
For transactions pursuant to reorganization plans adopted after July 18, 1984, the control threshold for this purpose is 50%, determined under Sec.
Creative Loafing's reorganization plans puts a preliminary payback to Atalaya of between $5 million and $15 million.
Last week, Sunbeam took a big step in the process when it received court approval for its reorganization plans.