reorganization

Definition from Nolo’s Plain-English Law Dictionary

1) The implementation of a business plan to restructure a corporation, which may include transfers of stock between shareholders of two corporations in a merger. 2) In bankruptcy, a corporation in deep financial trouble may be given time to restructure itself while protected from creditors by the bankruptcy court. The theory is that if the business is able to get on its feet and either survive or be able to sell itself for a good price, the creditors will eventually collect. (See also: Chapter 11 bankruptcy)

Definition provided by Nolo’s Plain-English Law Dictionary.