Creditors' committees in restructuring

The early creation of a formal or informal/ad hoc creditors' committee (or steering committee) assists negotiations between the debtor company and its creditors (see Practice Notes: Informal creditors' committee in a restructuring and Formal creditors' committee in a restructuring).

The committee is usually formed of creditors within the same class.

Various types of committee include:

•
senior creditors' committee
•
bondholders' committee
•
unsecured creditors' committee

Informal bondholder committees can be particularly litigious on questions of valuation

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