Creditors' Committee Objections

Summary

This practice note discusses common creditors' committee objections in Chapter 11 bankruptcy cases. The creditors' committee's duties to advocate for general unsecured creditors by maximizing the value of the estate means that it is often in opposition with the debtor and other stakeholders (such as secured lenders). Every Chapter 11 case has its own unique issues. However, there are certain milestones and events in the course of a bankruptcy reorganization that almost always generate some contention between the creditors' committee and the debtor or other stakeholders, such as the debtor's post-petition DIP financing, asset dispositions beyond the debtor's ordinary course of business, and the Chapter 11 plan process. But by no means are these the only areas in which a creditors' committee would assert objections.