Management of a firm may accept a creditor committee only as a last resort before bankruptcy.

Name: Management of a firm may accept a creditor committee only as a last resort before bankruptcy.
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Question

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If a firm is facing financial difficulty, management will often try to negotiate with creditors to find a solution before resorting to bankruptcy. One option for such negotiations is forming a committee of creditors, but this is typically seen as a last resort before filing for bankruptcy.

Management of a Firm May Accept a Creditor Committee Only