Committee of operational creditors governs pre pack insolvency with voting rights proportional to creditors' debt and equal committee powers. Regulation 25 mandates that where there is no financial debt or financial creditors are related parties, the committee shall comprise the largest operational creditors by value (or all if fewer), plus one elected workmen representative and one elected employee representative; voting rights are proportionate to the debt due or represented and total debt equals the sum of debts to listed operational creditors, workmen and employees; such a committee has the same rights, powers, duties and obligations as a committee of financial creditors.
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Provisions expressly mentioned in the judgment/order text.
Committee of operational creditors governs pre pack insolvency with voting rights proportional to creditors' debt and equal committee powers.
Regulation 25 mandates that where there is no financial debt or financial creditors are related parties, the committee shall comprise the largest operational creditors by value (or all if fewer), plus one elected workmen representative and one elected employee representative; voting rights are proportionate to the debt due or represented and total debt equals the sum of debts to listed operational creditors, workmen and employees; such a committee has the same rights, powers, duties and obligations as a committee of financial creditors.
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