Gläubigerausschuss (creditors' committee)

The creditors' committee (§§ 67 et seq. InsO) is an oversight body that supervises the insolvency administrator and must consent to certain transactions. It's usually composed of representatives from different creditor groups — secured creditors, employees, smaller and larger unsecured creditors.

For larger companies (above certain thresholds for balance-sheet total, revenue and headcount), a preliminary creditors' committee must be appointed even before the case opens (§ 22a InsO) — among other things, it has a say in selecting the (preliminary) administrator.

Relevant for buyers: for transactions of particular significance, such as selling the entire business or material assets, the administrator typically needs the creditors' committee's consent (§ 160 InsO). A professionally staffed committee can actually speed the process up (clear criteria, less re-negotiation); where none exists in smaller cases, the administrator decides alone — faster, but with less scrutiny for the buyer to rely on.