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What is a Creditors' Committee, and why does Funding Circle want to be a member of it?

The creditors’ committee comprises 3-5 of the largest unsecured creditors (or their representatives) of the insolvent company.  A creditors’ committee will be formed if the creditors want a committee in place to assist the administrator or liquidation with certain types of difficult decisions, such as whether to bring court proceedings against directors or third parties.  A creditors’ committee will also review the fees and expenses of the administrator or liquidator. 

 

It is helpful to be on the creditors’ committee as we would receive information that is not available to other creditors, and we may vote on decisions in accordance with our own commercial interests.

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