Corporate Reorganization
/ˌkɔːrpərət ˌriːˌɔːrɡənaɪˈzeɪʃən/
Definitions
- (n.) The legal process by which a corporation restructures its ownership, operations, or debts to improve financial stability or operational efficiency.
The company underwent a corporate reorganization to emerge from bankruptcy.
- (n.) A formal restructuring of a corporation's capital, assets, or business affairs often under court supervision, such as in bankruptcy proceedings.
During the corporate reorganization, creditors negotiated new terms for repayment.
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Commentary
Corporate reorganizations often involve complex negotiations and can be voluntary or court-ordered; precise drafting is essential to define stakeholder rights and obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.