creditors' committee guidelines

A creditors' committee is a group of key creditors appointed during a bankruptcy or restructuring process to represent the interests of all creditors. The guidelines for these committees outline their formation, responsibilities, and powers, such as reviewing financials, negotiating terms, and making recommendations to the court. Their goal is to ensure transparency, protect creditor interests, and facilitate an efficient reorganization or resolution. Committee members are typically chosen based on the size and type of claims they hold, and their actions are supervised by the bankruptcy court to balance the debtor’s needs and creditors’ rights.