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reorganization business definition
- The restatement of assets to current market value, along with a restructuring of liabilities and equity to reflect the reduction in asset values and negotiations with creditors. Reorganization is used as an attempt to keep a financially troubled or bankrupt firm viable. See also Chapter 11.
- Altering the organizational structure of an entity: The new CEO began a reorganization of the firm by removing a layer of management and consolidating seven divisions into three. Also called corporate reorganization.
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