Legal Definition and Related Resources of Reorganization
Meaning of Reorganization
The act or process of organization again and anew. In relation to corporations, the term means that a corporation has by some process organized anew, and yet it implies that some of the features of the old corporation are retained. People ex. rel. Barrett v Halsted street state Bank, 14 N.E.2d872, 295 Ill.App. 193. In the context of bankruptcy statutes, the term denotes a rearrangement of corporate structure which eliminates or reduces the rights of stockholders and reduces or extends the claims of creditors to a degree that will place the debtor corporation in a financial position where it can continue in business and meet the claims of its creditors. See In re public Leasing Corp., C.A. Okl. 488 F.2d 1369. The purpose of reorganization in this context is the ultimate rehabilitation of the debtor. See Nicholas v United States , 384 U.S. 678, 86 S.Ct. 1674, 18 L. Ed. 2d 853.
Financial Definition of Reorganization
Creating a plan to restructure a debtor’s business and restore its financial health.
Synonyms of Reorganization
- Associated Concepts: bankruptcy
- corporate reorganization
Related Entries of Reorganization in the Encyclopedia of Law Project
Browse or run a search for Reorganization in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Reorganization in Historical Law
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Legal Abbreviations and Acronyms
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Reorganization Definition (in the Accounting Vocabulary)
The New York State Society of Certified Public Accountants offers the following definition of Reorganization in a way that is easy for anybody to understand: This is a change in the businesses capital arrangements. If for a CORPORATION there are seven statutory options for reorganization that would cause the corporation and shareholders to not recognize any GAIN or LOSS on the exchange of stock.