re·​or·​ga·​ni·​za·​tion | \ (ˌ)rē-ˌȯr-gə-nə-ˈzā-shən How to pronounce reorganization (audio) , -ˌȯrg-nə-\

Definition of reorganization

: the act or process of reorganizing : the state of being reorganized especially : the financial reconstruction of a business concern

Keep scrolling for more

Other Words from reorganization

reorganizational \ (ˌ)rē-​ˌȯr-​gə-​nə-​ˈzā-​shnəl How to pronounce reorganizational (audio) , -​shə-​nᵊl \ adjective

Examples of reorganization in a Sentence

Recent Examples on the Web

Z Gallerie is closing as part of its bankruptcy reorganization. Maria Halkias, Dallas News, "The Container Store to exit Galleria North as retailer and shopping center respond to changing times," 9 July 2019 The only creditors to vote on the reorganization plan were bondholders. Patrick Danner,, "San Antonio-area retirement community’s bankruptcy plan OK’d," 2 July 2019 Weatherford said Friday that nearly 80 percent of its creditors are backing Weatherford's reorganization plan. L.m. Sixel, Houston Chronicle, "Weatherford files for bankruptcy protection," 1 July 2019 White House officials said a reorganization of the communications shop is under consideration, though no final decisions have been made. Author: Ashley Parker, Josh Dawsey, Philip Rucker, Anchorage Daily News, "With new West Wing cast, Trump calls shots, aides follow," 29 May 2018 Musk told stock analysts in a May 2 earnings call that a reorganization was on the way, but no one pressed him for details. Russ Mitchell,, "Musk's medicine for ailing Tesla: a 'thorough reorganization'," 14 May 2018 Her bankruptcy reorganization plan was still in the process of getting approved when the judge on the case happened to come across her show, Abby's Ultimate Dance Competition, according to the Pittsburgh Post-Gazette. Jasmine Gomez, Seventeen, "Why Was "Dance Moms" Star Abby Lee Miller In Prison?," 12 June 2019 Among the documents was a motion to sell the plant and surrounding property, the essence of a reorganization plan that also was filed Monday. Patrick Danner,, "Owners of bankrupt San Antonio food-maker will lose control," 11 June 2019 The reorganization will help our department better reflect the realities of how movies are released today, and build the connective tissue needed internally and externally to be effective and efficient. Pamela Mcclintock, The Hollywood Reporter, "Sony Pictures Issues Layoffs as Part of Marketing Reorganization," 11 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'reorganization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of reorganization

1751, in the meaning defined above

Keep scrolling for more

Learn More about reorganization

Statistics for reorganization

Last Updated

12 Jul 2019

Look-up Popularity

Time Traveler for reorganization

The first known use of reorganization was in 1751

See more words from the same year

Keep scrolling for more

More Definitions for reorganization



Financial Definition of reorganization

What It Is

Reorganization may refer to the rehabilitation of a company's finances pursuant to a bankruptcy. It can also refer to any process that affects the tax structure of a corporation. In addition, reorganization may refer to a merger or acquisition or sale of a company that changes the ownership, stock, or legal and management structure.

How It Works

Reorganization is a formal court-supervised process of restructuring a company's finances after a bankruptcy. In accordance with bankruptcy laws, specifically Chapter 11, a company is given protection from creditors during the time period when the company proposes and a bankruptcy court reviews and approves a specific reorganization plan. The reorganization is intended to repay creditors to the maximum extent possible and to restructure the company's finances, management, and operations to prevent the same problem from arising again.

A company may reorganize itself, including its legal or corporate structure to take advantage of existing or new tax regulations.

A merger or acquisition of a company may result in a reorganization of the company ownership, equity structure, management, and operations to take advantage of the efficiencies of new management, new technologies, and new capital assets.

Why It Matters

Reorganization is an important step for a business since it has the potential to open up new opportunities, increase efficiencies and profits, and give legal and financial protection during difficult times.

Source: Investing Answers


re·​or·​ga·​ni·​za·​tion | \ ˌrē-ˌȯr-gə-nə-ˈzā-shən How to pronounce reorganization (audio) \

Legal Definition of reorganization

1 : the act of reorganizing : the state of being reorganized
2a : the rehabilitation of the finances of a business in accordance with a plan approved by a bankruptcy court under the provisions of chapter 11 of the Bankruptcy Code
b : any of various procedures (as recapitalization or merger) that affect the tax structure of a corporation under the Internal Revenue Code and often produce favorable tax treatment
A reorganization \ ˈā-​ \
: a reorganization that consists of a merger or consolidation which complies with the requirements of applicable state statute
B reorganization \ ˈbē-​ \
: a reorganization involving the acquisition by one corporation of the stock of another corporation in exchange solely for all or some of the voting stock of the acquiring corporation or its parent either of which has control of the acquired corporation immediately after the acquisition
C reorganization \ ˈsē-​ \
: a reorganization involving the acquisition by one corporation of substantially all of the property of another corporation in exchange solely for all or part of the voting stock of the acquiring corporation or its parent regardless of any liability assumed by the acquiring corporation as a result of the acquisition
D reorganization \ ˈdē-​ \
: a reorganization involving a transfer by a corporation of all or part of its assets to another corporation that results in control of the other corporation being immediately placed in the transferor or one or more of its shareholders or both but under which the stock or securities of the other corporation must be distributed in a qualified transaction — see also spin-off, split-off, split-up
E reorganization \ ˈē-​ \
: a reorganization that consists of a recapitalization
F reorganization \ ˈef-​ \
: a reorganization consisting merely of a change in the identity, form, or place of organization of a corporation
G reorganization \ ˈjē-​ \
: a reorganization involving a transfer by a corporation of all or part of its assets to another corporation under a bankruptcy or similar proceeding provided that the stock or securities of the other corporation are distributed in a qualified transaction
3 : alteration of the existing structure of governmental units (as bureaus or legislative committees) and the lines of control and authority between them usually to promote greater efficiency and responsibility

Keep scrolling for more

Comments on reorganization

What made you want to look up reorganization? Please tell us where you read or heard it (including the quote, if possible).


food or victuals

Get Word of the Day daily email!

Test Your Vocabulary

Farm Idioms Quiz

  • cow coming home
  • What does 'poke' refer to in the expression 'pig in a poke'?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!


Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!