Author: Andrew M. Thaler
Creditors owed money by a company that files chapter 11 bankruptcy might receive a questionnaire asking if they are willing to serve on a Creditors’ Committee and wonder what that means.
A Creditors Committee is a group of creditors selected in chapter 11 reorganization cases to oversee the operations of the Debtor. The Committee serves as a “watchdog” over the debtor’s financial affairs. The Office of the United States Trustee (“UST”), a division of the Department of Justice, sends letters to selected unsecured creditors shortly after the filing of the case to see if they are interested in serving on the Committee. Claims held by fully secured creditors and “insiders” are not eligible to serve on the Committee.
A Creditors Committee is a group of creditors selected in chapter 11 reorganization cases to oversee the operations of the Debtor. The Committee serves as a “watchdog” over the debtor’s financial affairs. The Office of the United States Trustee (“UST”), a division of the Department of Justice, sends letters to selected unsecured creditors shortly after the filing of the case to see if they are interested in serving on the Committee. Claims held by fully secured creditors and “insiders” are not eligible to serve on the Committee.
RSS Feed
