Plan of Reorganization

A Plan of Reorganization is a structured proposal outlining how a company intends to change its operations and finances, typically following bankruptcy or financial distress. This plan details how the company aims to restructure its debts, improve its business model, or reorganize its assets in order to become profitable again. It often involves negotiations with creditors and stakeholders to agree on terms, such as debt reduction or converting debt to equity. Once approved by the court and stakeholders, it guides the company's recovery efforts and helps restore financial stability.