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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.



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


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.
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Meanwhile, a group of unsecured creditors of Loews Cineplex is trying to elbow back to the table in a bankruptcy reorg of the giant exhib.
With reorgs helping solve that problem, an industry peak of 38,000 domestic screens last summer was cut to 36,379 by year's end, according to NATO stats.
Because without that level of commitment, operational inertia will stop your reorg dead in its tracts, despite the best of intentions.
Average ratio minus reorg Average ratio minus reorg