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 ?
The fund has ceased purchasing its Common Shares as a result of the Board's determination to reorganize the fund as an open-end fund.
With Apple now starting to bounce as well, it is now possible that the Nasdaq will manage to reorganize itself and march higher.
With the closing of unprofitable stores already in process and the stabilizing of our trade credit, we expect to be well positioned to reorganize our business and emerge from Chapter 11 with a financially sound and competitive company.
Since then, the company greatly reduced its size and cost of operations, retaining the core engineering team with the intent to reorganize and bring its innovations to market.
In order to successfully reorganize, ECG received additional capital investment from its largest creditor, who restructured its existing debentures, and issued an additional 3.