What Happens At The Meeting Of Creditors In A Proposal?
It is mandatory to have a meeting of Creditors to consider and vote on the Proposal. It is common to have discussions with significant Creditors prior to the meeting and, in many cases, Creditors will vote for or against the Proposal by letter, without attending the meeting. The purpose of the meeting is to hear and respond to Creditor concerns and, if appropriate, amend the terms of the Proposal before having a final vote on its acceptance or rejection. If there are significant concerns voiced or issues that require investigation, it is possible that the Creditors will vote to adjourn the meeting to a later date in order to allow time to deal with their concerns or do necessary investigations. In addition to voting on the acceptance or rejection of the Proposal, the Creditors can seek the appointment of up to five Inspectors who are representatives of the Creditors. The role of the Inspector can be well defined or not and the specifics of the role will likely be dependent upon the nat
