Reorganization

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Reorganization

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.

Cross-references

Bankruptcy.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

reorganization

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
The town later decided to reorganize the fire department and implement a three- platoon structure, rather than the four-platoon structure delineated in the CBA.
Last summer Nardelli announced a plan to reorganize his company's merchandising operation, which would centralize all purchasing through Home Depot's Atlanta base.
Last December, the cabinet of then Prime Minister Yoshiro Mori adopted an administrative reform program in which the government aims to reorganize all 77 governmental firms and all 86 government-authorized corporations.
He developed a plan to reorganize worldwide treasury operations from many fragmented banking relations into coordinated relations, principally using two U.S.
Once the growth stabilized, it took a year to reorganize company operations for greater efficiency.
Such is the case with Supercuts, Inc., a chain of 1,100 hair salons, that worked with information architects to reorganize its operations procedure manual that is distributed to store managers throughout the country.
Patients who suffer little damage and whose brains reorganize to compensate for the loss can make remarkable recoveries.
With the Administrative Code of 1987 of the Fifth Republic, she retained the power to reorganize as far as the executive department was concerned, and a law was introduced in 1988, authorizing early retirement for the affected employees.
Keeping in view changing Political scenario of the country, PML-N Quaid Mian Mohammad Nawaz Sharif has decided to reorganize Party in Sindh and Balochistan, sources informed on Friday.
Masataka Ide made the comment while a group of business leaders in the Kansai area met for the first time the same day and agreed to finalize in May a plan to reorganize Kansai's five main business lobbies, including the association and the Kansai Economic Federation, and other smaller bodies.
Prime Minister Junichiro Koizumi has instructed administrative and regulatory reforms minister Nobuteru Ishihara to expedite efforts to reorganize special government-affiliated corporations, government officials said Friday.
said Monday it will reorganize its internal operations to improve efficiency.