Chapter 11, often referred to as reorganization, allows a debtor, typically a corporation or partnership, to remain in business while restructuring its debts under a court-approved plan.
Clearance is an indication from a taxing authority that a certain provision does not apply to a particular transaction. This procedure is only available when specified by statute and can significantly impact tax liabilities and treatment of specific transactions.
Rationalization refers to reorganization efforts within a firm, group, or industry aimed at increasing efficiency and profitability. Activities under rationalization may include closing redundant units, expanding others, or restructuring the product range to adapt to market demands.
Reorganization refers to the financial and structural overhaul of a company to restore profitability and operational efficiency. It commonly occurs in both legal and managerial contexts and can involve financial restructuring, changes in lines of authority, and adjustments to organization charts.
A Voting Trust Certificate is a transferable certificate that represents beneficial interest in a voting trust established to centralize corporate control and facilitate reorganization during financial difficulties.
