Bankruptcy is a multidimensional phenomenon with extensive economic and social consequences, and reorganization is proposed as a fundamental strategy for rescuing companies on the verge of collapse. However, existing evidence indicates that a considerable proportion of reorganization programs in Iran fail. This research aims to systematically identify the components that influence the success of reorganization in such companies and to present a comprehensive, indigenous model. In terms of purpose, the study is applied, and in terms of method, it is qualitative, employing the grounded theory approach. The research data were collected through semi-structured interviews with 11 experts. Data analysis was carried out through three stages of open, axial, and selective coding. The analysis led to the design of a five-dimensional paradigmatic model comprising causal conditions (crisis management, financial flexibility, operational re-engineering, dynamic market adaptation), contextual conditions (legal frameworks, corporate governance, stakeholder communication, market dynamics, and organizational culture), intervening conditions (organizational barriers, human challenges, economic constraints, legal obstacles, and technological shortcomings), strategies (financial, operational, and strategic innovations), and consequences (financial transformation, improved operational performance, strategic reinforcement, restoration of stakeholder relations, and institutional improvement). A key finding of the study is the emphasis on the interactive role of integrated financial–operational strategies and effective stakeholder management in the success of the reorganization process. In addition to filling an existing gap in the literature on developing economies, this model provides a practical framework for managers and policymakers and can serve as a basis for the development of future theories in the field of reorganization.