REORGANIZATION

By SovConn | October 29, 2017

reorganization,n.1.Bankruptcy. A financial restructuring of a corporation, esp. in the

repayment of debts, under a plan created by a trustee and approved by a court. See CHAPTER11.

[Cases: Bankruptcy 3501.C.J.S. Bankruptcy § 368.]

haircut reorganization.A restructuring that reduces the principal amount of indebtedness

owed to creditors. • The more common usage is simply haircut <we took a haircut on that deal>.

2.Tax. A restructuring of a corporation, as by a merger or recapitalization, in order to improve

its tax treatment under the Internal Revenue Code. • The Code classifies the various types of

reorganizations with different letters. IRC (26 USCA) § 368(a)(1). Cf. RECAPITALIZATION.

A reorganization.A reorganization that involves a merger or consolidation under a specific

state statute. [Cases: Internal Revenue 3668.]

B reorganization.A reorganization in which one corporation exchanges its voting shares for

another corporation’s voting shares. [Cases: Internal Revenue 3669. C.J.S. Internal Revenue §§

406–407.]

C reorganization.A reorganization in which one corporation exchanges its voting shares for

substantially all the assets of another corporation. [Cases: Internal Revenue 3670.]

D reorganization.A reorganization in which the corporation transfers some or all of its assets

to another corporation that is controlled by the transferor or its shareholders, and then the stock of

the transferee corporation is distributed. [Cases: Internal Revenue 3670.]

E reorganization.A reorganization that involves a recapitalization. [Cases: Internal Revenue

3671.]

F reorganization.A reorganization that involves a mere change in the identity, form, or place

of organization of a corporation. [Cases: Internal Revenue 3672.]

G reorganization.A reorganization that involves a transfer of all or part of the corporation’s

assets to another corporation in a bankruptcy or similar proceeding. [Cases: Internal Revenue