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 ?
For example, shareholders of the target are permitted to receive boot (property other than stock of the acquiring corporation) in a type A reorganization. A target shareholder who receives boot in a type A reorganization recognizes gain to the extent of the lesser of the boot or the gain realized upon the exchange of the stock.
The fifth, and most recent, reorganization took place under Cory Aquino in 1986, for which she used her revolutionary powers.
Section 361(a) states that no gain or loss to a corporation will be recognized if that corporation is a party to a reorganization and exchanges property solely for stock of another corporation involved in the reorganization.
Corporate-wide (macro-level) reorganization efforts often include multiple micro-level reorganizations within the umbrella of corporate-wide change efforts.
2) Divisive reorganizations that are otherwise known as spin-offs, split-offs and split-ups.
Sections 221(2), 167, 167.1, and 156 in the GST provisions of the Excise Tax Act afford taxpayers relief from the obligation to collect and remit GST in connection with certain reorganization transactions, but require taxpayers to satisfy a range of highly technical requirements.
The proposed regulations also address a wide range of technical issues on cross-border mergers under IRC section 368(a)(1)(A), including basis and holding periods, triangular reorganizations, the application of sections 367 and 1248, and asset transfers.
Effect of the Tax-free Reorganization Upon the Selling Shareholder.
Employees affected by the reorganization initiatives retrained for other jobs, accepted other employment, or qualified for retirement.
Read how Aetna Life & Casualty's CFO helped lead the firm's reorganization.
Meanwhile, of course, compromise is essential in any reorganization process.
These reorganizations have both established a single point of contact for company "clients" through an account executive team concept.