Legal Definitions - G reorganization

Definition: G reorganization is a type of corporate restructuring that involves transferring all or part of a corporation's assets to another corporation in a bankruptcy or similar proceeding. It is classified as a type of reorganization under the Internal Revenue Code and is designated as a "G" reorganization.

Examples:

• A company files for bankruptcy and transfers its assets to a new corporation in order to repay its debts. This is an example of a G reorganization.
• Another example of a G reorganization is when a company sells a portion of its assets to another corporation in a bankruptcy proceeding.

These examples illustrate how a G reorganization involves transferring assets from one corporation to another in a bankruptcy or similar proceeding. This type of restructuring can help a company repay its debts and improve its financial situation.