Best Interests of Creditors

The "Best Interests of Creditors" is a principle used in bankruptcy and restructuring contexts, where the goal is to ensure that decisions made by a company or during a legal process prioritize the financial recovery and benefits of its creditors. Essentially, it means that actions taken should aim to maximize the potential payout to those owed money rather than solely benefiting the company or its owners. This principle guides courts and decision-makers in evaluating plans and actions during distressed financial situations, ensuring fairness and accountability in the treatment of all parties owed debt.