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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.
A reorganization, if properly carried out, results in no taxable gain or loss at the time of reorganization and preserves favorable tax attributes of the old corporation.
He said that employment losses in New York City as a direct result of the reorganization would total 470 jobs, but a domino effect would mark this as only the beginning of a longer line of job loses in architectural and engineering firms.
Because many foreign jurisdictions now have merger statutes that operate like those of the states, under which all assets and liabilities move by operation of law, the change in the definition of an A reorganization now allows transactions effected pursuant to these statutes to qualify as statutory mergers or consolidations for Sec.
An entity classification election of an eligible entity does not terminate solely because the owner (by sale, an "A," "C," "D" or "F" reorganization, or otherwise) transfers all of the membership interest in that entity to another person.
As explained in the preamble, the cases are read as holding that if T transfers its assets to an acquiring corporation (P) in exchange for stock of the corporation controlling P (as in Groman), or if P acquires the T assets but pursuant to the plan of reorganization transfers them to a controlled subsidiary (as in Bashford), the continuity-of-interest doctrine is not satisfied.
It is the last requirement that limits dispositions of stock acquired in a tax-free reorganization.