common restructuring terms: 

 
WORKOUTS
An out-of-court agreement, usually between a lender and borrower, restructuring an under-performing or defaulted credit facility. Workouts are often initiated by a lender with the intention of avoiding the the cost and uncertainty associated with a borrower filing for bankruptcy.

TURNAROUNDS
Generally, an out-of-court reorganization of a going concern initiated by management, directors or investors to improve bottom-line performance of a business via analysis and implementation of financial controls, policy & process improvement and business development strategies.

WIND-DOWNS
An informal out-of-court process for closing a business organization in an orderly manner. Generally preferred by small business owners where the administrative cost of a formal liquidation under Chapter 7 is not beneficial to creditors.

BANKRUPTCY
REORGANIZATION (Chapter 11)
A formal federal court proceeding voluntarily commenced by an individual or business organization and conducted through the U.S. Bankruptcy Court in accordance with U.S. Bankruptcy Code (11 U.S.C. §101 et. seq.) to restructure the financial and commercial relationships of a business or individual. The successful exit from a Chapter 11 reorganization is through the confirmation (approved by court and creditors) of a plan of reorganization.

LIQUIDATION (Chapter 7)
A formal proceeding to cease business operations (Chapter 7) and account for the assets and liabilities of a business and make distributions to creditors in accordance with the priorities established under federal law.

COMPOSITION OF CREDITORS
An out-of-court agreement between a business organization and its creditors establishing a plan of payment of creditors similar to a bankruptcy reorganization. Usually requires the consent of a minimum percentage of creditors to become effective and may include the establishment of a Creditor Trust or other vehicle for the management and distribution of assets/dividends to creditors.

ASSIGNMENT FOR BENEFIT OF CREDITORS
A practice under the common law (some state’s have specific statutes) for the voluntary transfer of a businesses assets to a 3rd party fiduciary for the purpose of liquidating assets and making disbursements to creditors in order of priority.

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