What is the role of a steering committee in a restructuring process?

The role of a steering committee in a restructuring process is pivotal as they guide the restructuring strategy and decision-making. This committee is typically composed of key stakeholders, such as major creditors or representatives from different classes of stakeholders, who have a vested interest in the outcome of the restructuring. Their primary function is to provide direction and oversight to ensure that the restructuring plan effectively addresses the financial and operational challenges faced by the company.

By offering strategic insights and facilitating communication among stakeholders, the steering committee helps to align interests and create a coordinated approach to the restructuring. This shared leadership also enhances the likelihood of reaching a consensus on the proposed plan, which is essential for the successful implementation of the restructuring efforts.

While other roles mentioned, such as representing shareholders or handling legal disputes, can be part of broader restructuring processes, they do not encapsulate the main responsibility of the steering committee, which is to actively participate in and guide the decision-making surrounding the restructuring strategy itself.