Unsecured Creditors’ Committee

Shortly after the filing of a Chapter 11 petition, the U.S. Trustee will appoint a creditors' committee to represent the interests of all unsecured creditors. Typically, the unsecured creditors' committee is comprised of creditors who hold the largest unsecured claims against the debtor. Also known as the Official Unsecured Creditors Committee, these groups will typically consist of an amalgam of trade claimants, landlords, and bondholders. Creditors' committees play an important role in Chapter 11 cases. The committee consults with the debtor in possession on the administration of the case, investigates the debtor's conduct and operation of the business, and participates in formulating a plan, among other things. A creditors' committee may, with the court's approval, hire an attorney or other professionals to assist in the performance of the committee's duties.