Committee of Unsecured Creditors

The Committee of Unsecured Creditors is a group formed during bankruptcy proceedings representing the interests of creditors who do not have secured claims on the debtor's assets. These creditors, such as suppliers and service providers, are often at a higher risk of not getting repaid. The committee plays a crucial role in negotiating with the debtor about how to manage the bankruptcy process, advocating for fair treatment, and ensuring that their voices are heard in plans for repaying debts or restructuring. Their goal is to maximize recoveries for all unsecured creditors involved.