Creditors' Committee

AAA

DEFINITION of 'Creditors' Committee'

A group of people who represent a company's creditors in a bankruptcy proceeding. The creditors' committee is usually further divided between secured and unsecured creditors.

INVESTOPEDIA EXPLAINS 'Creditors' Committee'

The secured creditors' committee consists of lenders that have a first claim on assets that collateralize their loans. Members within the unsecured creditors committee generally have more or less power depending on the amount they are owed. Although the court will take into account the position of the creditors' committee, the bankruptcy trustee has ultimate power in deciding what is fair to all parties.

RELATED TERMS
  1. Secured Creditor

    Any creditor or lender that takes collateral for the extension ...
  2. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. Creditor

    An entity (person or institution) that extends credit by giving ...
  5. Unsecured Creditor

    An individual or institution that lends money without obtaining ...
  6. Bankruptcy Trustee

    A person appointed by the United States Trustee, an officer of ...
Related Articles
  1. What happens to a company's stocks and ...
    Investing

    What happens to a company's stocks and ...

  2. Declaring Bankruptcy Is No Easy Out ...
    Insurance

    Declaring Bankruptcy Is No Easy Out ...

  3. Distressed Debt An Avenue To Profit ...
    Bonds & Fixed Income

    Distressed Debt An Avenue To Profit ...

  4. An Overview Of Corporate Bankruptcy
    Bonds & Fixed Income

    An Overview Of Corporate Bankruptcy

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center