Who runs the day to-day operations of the business?
The debtor retains control of the business by the fact that the Bankruptcy Code (section 1107) places the debtor in possession with the rights and powers of a Chapter 11 trustee. [Back to top] • What role do Creditors play? (Creditors’ Committees) The creditors’ 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 unsecured creditors who hold the seven largest unsecured claims against the debtor. 11 U.S.C. § 1102. 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. 11 U.S.C. § 1103. 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. The creditors’ committee can be an imp
