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The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent.

Reorganization is ordinarily accomplished by way of a Judicial Sale of the property of the corporation. The purchasers then often form a new corporation to which substantially all assets of the old are transferred.




n. the implementation of a business plan to restructure a corporation, which may include transfers of stock between shareholders of two corporations in a merger. In bankruptcy, a corporation in deep financial trouble may be given time to reorganize while protected from creditors by the bankruptcy court. The theory is that if the business is able to get on its feet the creditors will eventually collect. (See: corporation, merger, bankruptcy)


noun alteration, amelioration, betterment, change, conversion, improvement, melioration, overhauling, readjustment, rearrangement, rebuilding, reconstitution, reconstruction, rectification, reformation, rehabilitation, remaking, remodeling, restoration, restructuring, revising, revision, transformation
Associated concepts: bankruptcy, corporate reorganization
See also: development, progress, reclassification, reconversion, rehabilitation, repair, replacement
References in periodicals archive ?
Normally, COI is measured as of the date the reorganization transaction is closed.
How Selling Shareholders Can Diversify Their Stock Holdings After the Tax-free Reorganization.
A few years and a corporate reorganization later, the stock is sold for $300 million.
While the filing of a consensual plan of reorganization is the company's preferred outcome, the company believes that it is taking prudent steps in the event a consensual plan of reorganization with Ventas cannot be reached.
43 allows the company to "accomplish, in its books of account, substantially what might be accomplished in a reorganization by legal proceedings--that is, elimination of a deficit in retained earnings and establishment of a new basis of accounting for its assets and liabilities.
368(a) (1) (F), a Type F reorganization is a "mere change in identity, form, or place of organization of one corporation, however effected.
D'Amato, and New York City Mayor David Dinkins, are supporting Secretary Aspin's decision to postpone and review implementation of the reorganization plan.
Background of merger and reorganization in Chinas auto part industry
Despite the fact that each of the merger participants is a foreign entity, the transaction nevertheless could be a statutory merger and thus a "good" type A reorganization under the new regulations, because both Z and Y are qualified participants and the transaction is not divisive.
An S corp is a Qualified S Corp if it owns 100 percent of the Qualified Subsidiary immediately after the sale or reorganization described above.
Those decisions, however, represent a shaky foundation for an elusive, yet pervasive, doctrine that permeates the Internal Revenue Code's reorganization provisions.
It is the last requirement that limits dispositions of stock acquired in a tax-free reorganization.