Unsecured Creditors' Committee

An Unsecured Creditors' Committee is a group formed during a company's bankruptcy or financial restructuring, representing creditors who haven't pledged specific assets as collateral. This committee's role is to advocate for the interests of unsecured creditors—such as suppliers or bondholders—by reviewing the company's financial situation, negotiating terms, and helping to develop a plan for repayment or recovery. They serve as a voice for these creditors in legal proceedings and negotiations, ensuring their interests are considered alongside other stakeholders.