What role do Creditors play?
• In some Chapter 11 cases a committee of creditors (the “creditors committee”) may be appointed from amongst the largest 20 unsecured claimants. The committee can play a major role in chapter 11 cases. The United States trustee, a federal employee to be distinguished from a private case trustee or panel trustee, appoints the committee, which ordinarily consists of three to seven unsecured creditors. The committee may consult with the debtor-in-possession on the administration of the case, investigate the conduct of the debtor and the operation of the business, and participate in the formulation of a plan of reorganization. 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.
