What is a creditor’s committee in a Chapter 11 bankruptcy?

A creditor’s committee in a Chapter 11 bankruptcy is a group of creditors appointed by the US Trustee specifically during the proceeding. The committee’s responsibility is to represent the interests of all creditors in the bankruptcy, who are spread out across the state of Mississippi. This committee serves to ensure that all creditors are being treated fairly and that they are receiving a share of whatever assets the debtor has available. The committee is composed of a few large creditors relative to the size of the debtor’s debt. This ensures that no creditor is more important than the others and that everyone is being treated fairly. The committee will investigate the debtor’s assets and liabilities, and report on them to the US Trustee. They may even be able to negotiate a reorganization of the debtor’s debt if the creditors are willing. The committee also works to prevent the debtor’s assets from being depleted or used for purposes other than paying creditors. Additionally, they help develop a reorganization plan if necessary to ensure that creditors get paid as much as possible. In short, the creditor’s committee is an important part of a Chapter 11 bankruptcy process in Mississippi. They ensure that creditors are being treated fairly and that all assets are being used appropriately. They also help develop an appropriate reorganization plan, if necessary, to maximize the amount of money that creditors receive.

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