Classification of Accepted Patterns of Reorganization

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The seven acceptable patterns of reorganization may be classified into three categories: Acquisitive, Divisive, Re-capitalizing.

Acquisitive reorganizations

Type “A,” “B”, “C,” and acquisitive D, in which one Corporation acquires another corporation’s stock, assets, or some combination of both.

Divisive reorganization

Type D involves the division of one corporation into two or more corporations, and the original corporation may or may not exist afterwards.

Re-capitalization and re-construction

“E”- A single corporation reconfigures its capital structure (e.g., issues stock to its shareholders in exchange for their bonds).
“F,”- A corporation merely changes its name or place of incorporation, or makes some other alteration in its form.
“G”- Liquidation through bankruptcy.

Proceed to Details of Patterns of Reorganization

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