Definition of Capital reorganization:
Fundamental, voluntary change in a firms capital structure, effected by altering the voting rights of the providers of equity capital and/or loan capital; such as by converting common stock (ordinary shares) into redeemable preferred stock (preference shares). Capital reorganization is resorted-to in case of serious financial and operating problems, such as loss of a major customer or the danger of an imminent bankruptcy. See also capital restructuring.
Meaning of Capital reorganization & Capital reorganization Definition