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 ?
another 60 days to draft a bankruptcy reorganization plan, but warned that the new deadline is final.
On June 21, the Trump Administration announced a government-wide reorganization plan, Delivering Government Solutions in the 21st Century.
Hawker, which filed Chapter 11 bankruptcy in May and preliminary reorganization plans in Kansas on June 30, said it reached the deal with Superior Aviation Beijing Co.
Tribune also said the impending sale of the Chicago Cubs and the baseball team's landmark Wrigley Field could substantially change its reorganization plan.
The total includes at least 169 claims that have been resolved since the bankruptcy was filed in 2004, but won't be paid unless the reorganization plan is approved, according to court records.
While stating that it supports the company's decision to file the reorganization plan, the Committee yesterday said it "will continue to consider potential alternatives in order to maximize the ultimate recoveries" for unsecured creditors.
The reorganization plan was announced at the CPA/CWC's joint annual fall meeting, held Sept.
The sale of the two imprints was made pursuant to the Millbrook Press, Inc.'s (Brookfield, CT) Chapter 11 reorganization plan. Milbrook was represented in the deal by The van Tulleken Co.
The airline is seeking to extend the period of exclusivity in which it alone can file a reorganization plan from 8 March to 30 June.
TROY, Mich.-Kmart said it will emerge from Chapter 11 later than expected due to creditors' objections to the retailer's reorganization plan. The chain now expects to exit the week of May 5, as opposed to the original April 30 date.
Federal judge Susan Pierson Sonderby approved Kmart's disclosure statement for its reorganization plan, freeing the retailer to begin soliciting creditor approval of the plan.
The company is now consulting with its bankers and expects to release a reorganization plan in coming months.