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

A creditor’s committee in a Chapter 11 bankruptcy in West Virginia is composed of a limited number of creditors, usually among the largest unsecured creditors. This committee is appointed by the U.S. Trustee, a branch of the Department of Justice which oversees the bankruptcy process. The primary purpose of this committee is to serve as a representative of all unsecured creditors. The committee is responsible for providing creditors with information on the bankruptcy, making sure that their rights are protected and helping the court in evaluating the debtor’s reorganization plan. The committee meets with the debtor and his or her attorneys to discuss the reorganization plan. It is the committee’s job to raise concerns when they do not think the plan is fair to creditors. The committee also meets with the debtor’s other creditors to get their opinions and assess whether there is a consensus among them. The committee is also responsible for gathering information on the debtor’s assets, debts, and financial condition and negotiating with the debtor to restructure the debtor’s obligations. In addition, the committee can hire experts such as accountants or appraisers to help them assess the debtor’s financial condition.

Related FAQs

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

Related FAQs

Related Blog Posts