corporate reorganization


corporate reorganization
The act or process of organizing again or anew to effect a corporate readjustment of existing interests, almost invariably involving a corporation in financial distress or in a condition of inability to compete in the commercial world. 19 Am J2d Corp §§ 1515 et seq. A means whereby those variously interested financially in a distressed corporation seek, through continuance of the business as a going concern, to work out of the difficulty for themselves and thus gain more than they could by a sale of the assets or of the business to others. Warner Bros. Pictures, Inc. v Lawton-Byrne-Bruner Ins. Agency Co. (CA8 Mo) 79 F2d 804. Often accomplished by a judicial sale of the corporate property and franchises and the formation by the purchasers of a new corporation in which the property and franchises are thereupon vested, and the stock and bonds of which are divided among such of the parties interested in the old company as are parties to the plan of reorganization. 19 Am J2d Corp § 1515. A proceeding in the bankruptcy court to obtain a change in the capital structure, a reduction of indebtedness, and other permissible changes to rehabilitate a failing corporation and promote the prospects of creditors to obtain a full realization of their claims or a better realization than would occur through immediate realization. 9 Am J2d Bankr § 1496.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • corporate reorganization — See reorganization …   Black's law dictionary

  • corporate reorganization — See reorganization …   Black's law dictionary

  • claim in corporate reorganization — A claim of whatever character against a debtor or its property, except stock, whether or not such claim is provable in an ordinary bankruptcy proceeding and whether secured or unsecured, liquidated or unliquidated, fixed or contingent. Bankr Act… …   Ballentine's law dictionary

  • reorganization — re·or·ga·ni·za·tion /ˌrē ˌȯr gə nə zā shən/ n 1: the act of reorganizing: the state of being reorganized 2 a: the rehabilitation of the finances of a business in accordance with a plan approved by a bankruptcy court under the provisions of… …   Law dictionary

  • reorganization — Act or process of organizing again or anew. People ex rel. Barrett v. Halsted Street State Bank, 295 IlLApp. 193, 14 N.E.2d 872, 876. General term describing corporate amalgamations or readjustments occurring, for example, when one corporation… …   Black's law dictionary

  • reorganization — Creation of a plan to restructure a debtor s business and restore its financial health. Bloomberg Financial Dictionary See also: reorg; corporate action * * * reorganization re‧or‧gan‧i‧za‧tion [riːˌɔːgənaɪˈzeɪʆn ǁ ˌɔːrgənə ] also reorganisation …   Financial and business terms

  • Reorganization — Creating a plan to restructure a debtor s business and restore its financial health. The New York Times Financial Glossary * * * reorganization re‧or‧gan‧i‧za‧tion [riːˌɔːgənaɪˈzeɪʆn ǁ ˌɔːrgənə ] also reorganisation noun [countable, uncountable] …   Financial and business terms

  • reorganization of corporation — See corporate reorganization …   Ballentine's law dictionary

  • Corporate personhood — refers to the question about which subset of rights that are afforded under the law to natural persons should also be afforded to corporations as legal persons. In Dartmouth College v. Woodward (1819), corporations were recognized as having the… …   Wikipedia

  • Corporate personhood debate — The corporate personhood debate refers to the controversy (primarily in the United States) over the question of what subset of rights afforded under the law to natural persons should also be afforded to corporations as legal persons.Opponents of… …   Wikipedia