Creditors’ committee

A creditors’ committee is a group of creditors in insolvency proceedings who represent their interests and can influence the course of the proceedings. The insolvency court may appoint one, and for larger companies a preliminary creditors’ committee is mandatory as early as the opening phase (Sections 22a and 67 of the German Insolvency Code). It should include creditors entitled to separate satisfaction, creditors with the largest claims, small creditors and a representative of the employees. Persons who are not creditors may also become members (Sec. 67 (3) InsO). Its task is to support and supervise the insolvency administrator in the management of the proceedings (Sec. 69 InsO). It must approve particularly significant legal transactions (Sec. 160 InsO). The creditors’ committee is therefore an important player in insolvency proceedings and helps to ensure that the proceedings are fair and just for all parties involved.