What is a creditors’ committee?

A creditors’ committee is a legal entity made up of a group of creditors from a business that is in financial distress. It is formed in order to protect the interests of the unsecured creditors. In Oregon, creditors’ committees are used by bankruptcy courts in Chapter 11 bankruptcy cases to help ensure that the rights of all creditors are observed. The purpose of the creditors’ committee is to represent the interests of all creditors in bankruptcy proceedings, and to ensure that all creditors receive their fair share of any payment distributions. The committee has the power to negotiate on behalf of all creditors and to investigate the causes of the bankruptcy. They can also make recommendations to the court about how to restructure the company in a way that will benefit all creditors. Creditors’ committees are made up of several creditors, most often the ones with the highest claims. In Oregon, members of the creditors’ committee are appointed by the court and must be approved by the United States Trustee. The committee has the power to hire legal counsel and to investigate the causes of the bankruptcy. They must also provide reports to the court and creditors at least once every three months. Creditors’ committees play an important role in ensuring the fairness and appropriateness of bankruptcy proceedings. They can help ensure that all creditors are treated fairly and are given the opportunity to receive any payments that are available. It is important that creditors’ committees are active in bankruptcy proceedings to ensure that all creditors are given their fair share.

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