Unsecured Creditor Committee

An Unsecured Creditor Committee is a group of creditors who do not have collateral backing their loans, such as credit card companies or suppliers. When a company faces financial difficulties and goes through bankruptcy, this committee is appointed to represent and advocate for the interests of all unsecured creditors. They review the company’s financial situation, participate in negotiations, and work to maximize the recovery of owed funds. Essentially, they act as a collective voice for those unpaid unsecured lenders, helping ensure their rights are considered during the bankruptcy process.