Reorganization of a company

Reorganization of a company – this term applies in the area of Corporate Law, where it refers to a corporate entity that is facing bankruptcy. So in this situation the creditors acquire a trusted assignee to be hired in order to prepare a reorganization plan (i.e. a payment schedule with concrete term) so that the corporate body can avoid liquidation. Basically the reorganization of a company is a try to save the company and to bring it back to business, instead of liquidating it. The reason is that a working company can acquire more income, resp. to pay better its creditors, than a company in liquidation, with limited assets that is not allowed to do business any longer.

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