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.

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)

References in periodicals archive ?
In another step in the process of reorganizing its polyamide business, Evonik will be discontinuing the production and sale of polyphthalamide at its Witten site by the end of the first quarter of 2020.
21 for 2011 was issued reorganizing Algomhuria Foundation for press, printing and publishing.
- Reorganizing its visuals department to enhance didigtal initiatives, and investing in 40 video cameras for the newsroom.
The plan's "costs are unaffordable and would prevent the company from successfully reorganizing and emerging from bankruptcy," it said in a statement.
As a result, Appeals is reorganizing to consolidate LBS and General Appeals and structuring the organization on a more geographic basis.
The steering committee, chaired by Prairie Village, Ken., Council Member Ruth Hopkins, also completed the process of reorganizing and streamlining the CED chapter of the National Municipal Policy.
London, UK 2/26/02--Amersham announced that it is reorganizing the internal structure of its Amersham Biosciences unit.
An advisory panel to the telecommunications minister on Wednesday proposed reorganizing the Nippon Telegraph and Telephone Corp.
''There have been many discussions about reorganizing (the lobbies), but no changes have yet been made.''