Definitions for "CREDITORS' COMMITTEE"
a committee appointed by the creditors of a company in relation to which an Administration Order has been made, which assist the Administrator with his duties.
a committee comprising representatives of the creditors in a Chapter 11 proceeding, formed to negotiate the debtor's plan of reorganization; generally, a committee has no fewer than 3 and no more than 11 members and serves as an advisory body.
A statutory requirement of Chapter 11 is to appoint such a committee to make possible pooling the twenty largest unsecured creditors, to allow action as a group to save expenses.