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A creditors' committee is a group of people representing a company's creditors in a bankruptcy proceeding.

A creditors' committee is typically composed of unsecured creditors holding the largest claims.

Primary roles include consulting with the debtor in possession, investigating the debtor's conduct, and participating in formulating a reorganization plan.

Creditors' committees have the right to access relevant information to perform their duties, including financial data and business operations details.

Creditors' committees often provide advice to the debtor on business matters, potentially influencing management decisions during the reorganization process.

Creditors' committees can significantly influence the debtor's reorganization plan and its terms as they represent a collective voice of creditors.

Creditors' committees play a crucial role in monitoring the debtor's business operations and financial transactions during the bankruptcy process.

Creditors' committees interact with other stakeholders, like equity holders or secured creditors, to build consensus or negotiate the reorganization plan.

Creditors' committees participate in court hearings and present their positions on various aspects of the bankruptcy case.

Creditors' committees hold negotiating power in bankruptcy cases, often leading to better outcomes for unsecured creditors in the bankruptcy settlement.

Creditors' committees can evaluate and approve, or object to, any post-petition financing (DIP financing) the debtor seeks to obtain.

Creditors' committees have a fiduciary responsibility to represent the interest of all unsecured creditors, not just the committee members.

Creditors' committees have a say in the assumption or rejection of the debtor's executory contracts, affecting the reorganization process.

Creditors' committees can influence and oversee the sale of assets in a bankruptcy case to maximize returns to unsecured creditors.