A reorganization agreement is the formal document which lays down the terms and conditions to reform or rejig a company’s structure in order to earn more profits and make it a more secure organization. By implementing a reorganization strategy, a company which is on the verge of bankruptcy can hope to get back on its feet and is given a change by the creditors to opt for a sound reorganization plan so that it starts to do well again and is able to return their money.
Reorganization agreements can include different types of strategies. It revamps a company’s operations and sometimes also its top management is changed and new people are hired with different responsibilities. In this way, they can opt to concentrate on certain core operations of the company or merge two or more units to create a new unit. Certain fringe activities may be outsourced to other cities or countries and the company’s capital and debt structure may be changed.
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Sample Reorganization Agreement
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