D reorganization

Definition of "D reorganization"
  1. A restructuring process where a company conveys a portion or all of its resources to another firm, resulting in either the original company, one or more of its stockholders, or both gaining immediate control over the receiving firm. However, for this to be considered a D reorganization, the shares or securities of the recipient company need to be circulated in a transaction that fulfills specific legal prerequisites
How to use "D reorganization" in a sentence
  1. Under a D reorganization, the parent company transferred some of its assets to the subsidiary, which gave it control over the subsidiary.
  2. The company underwent a D reorganization to retain control while transferring some of its assets to the freshly established corporation.
  3. To structure their assets efficiently and retain control, they decided on a D reorganization where significant assets were shifted to a newly formed company.

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