reorganization

1. 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.
2. 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.