A plan filed with a bankruptcy court judge by a company in Chapter 11 proceedings in which the disbursement of assets is stipulated. The plan must be approved by the firm's creditors and by the court. A reorganization plan results in new securities being given to creditors in trade for old securities.
Main Entry: reorganization plan Function: noun : a plan submitted for approval to a bankruptcy court by a corporation seeking to reorganize under chapter 11 of the Bankruptcy Code that sets out the proposed restructuring
