Restructuring & Reorganization Plans

Restructuring and reorganization plans are strategies used by a company in financial distress, specifically during Debtor in Possession (DIP) proceedings. In this process, the company aims to restructure its debts and operations while still managing its assets. The plan outlines how the company will pay back creditors, reduce costs, and improve profitability to emerge financially stronger. Creditors must approve the plan, and it usually involves negotiating new terms for debts. The goal is to allow the business to continue operating and ultimately return to stability, benefiting both the company and its stakeholders.