Both an extension and a creditor committee cannot be established.

Question

Quizplus · Accepted Answer

Both an extension and a creditor committee can be established, they are not mutually exclusive. An extension committee is made up of creditors and is responsible for negotiating the terms of the extension of a company’s debt obligations. A creditor committee is also made up of creditors and is responsible for representing the interests of creditors in a bankruptcy proceeding.

Both an Extension and a Creditor Committee Cannot Be Established