What is the process for corporate reorganization?

Corporate reorganization is the process of restructuring a company’s management, ownership, and/or operations. Reorganization may be necessary when a company’s debts or assets are too large for the current management and ownership structure, when a company is facing bankruptcy, or when a company wants to expand or diversify its business. In California, corporate reorganization generally begins with an assessment of the company’s existing assets and liabilities. This assessment will help the company identify issues and strategies that can help address existing problems. Then, the company must decide how to reorganize, which may include selling off assets, restructuring the company’s ownership, or issuing additional capital. A plan of reorganization must then be drawn up that includes when, where, and how the reorganization will take place. Once the plan of reorganization is in place, the company must obtain approval from the U.S. Bankruptcy Court. This approval is required for certain types of corporate reorganization, such as in cases of bankruptcy. Finally, the reorganized company is required to file its plan of reorganization with the California Secretary of State’s office. Once the papers are filed, the reorganization is complete and the company can move forward with its new management, ownership, and operations.

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