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Simple English definitions for legal terms
primary committee
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A quick definition of primary committee:
A primary committee is a group of people who work together to help someone who owes money come up with a plan to pay back what they owe. This is often used in situations where the person or company owes so much money that they cannot pay it all back at once. The primary committee helps the debtor create a plan to pay back the money over time, so that they can eventually become debt-free.
A more thorough explanation:
A primary committee is a group of creditors who work together to assist a debtor in creating a reorganization plan during bankruptcy proceedings.
For example, if a company files for bankruptcy, a primary committee may be formed by the company's largest creditors to negotiate a plan for the company to repay its debts and restructure its operations. The primary committee may also represent the interests of other creditors who are not part of the committee.
The primary committee plays an important role in the bankruptcy process as they work to ensure that the debtor's reorganization plan is fair and feasible. They may also negotiate with the debtor to make changes to the plan to better serve the interests of all creditors involved.