The Power of the Ad Hoc Group
What is an ad hoc group, and why does it matter? This article walks through how informal creditor groups form, what they can accomplish in large Chapter 11 cases, and how the right team can represent individual creditors with disproportionate influence.
The Power of the Ad Hoc Group
In large bankruptcy cases, a familiar story unfolds repeatedly: a handful of large creditors call the shots, while everyone else is left on the sidelines. If you’re a smaller creditor—owed money but without a legal team or insider access—it can feel like you’re irrelevant. Powerless. Left behind.
But that’s not the full story.
Behind the scenes of nearly every major Chapter 11 bankruptcy is something most people don’t hear about: the ad hoc creditor group—an informal alliance of creditors who band together, pool resources, and negotiate as one. These groups change the game. They create leverage. And they’ve helped ordinary creditors recover millions they otherwise would have lost.
At White Knight Restructuring, we’ve built and led these groups. We know how they work—and more importantly, we know how to make them work for you.
Take this example: A few years ago, we were advising a group of suppliers to a national retail chain headquartered in New York. The company was heading toward Chapter 11, and everyone was bracing for steep losses. But instead of waiting for the formal creditors’ committee (which, by the way, typically includes only the largest players), we helped a dozen smaller vendors form an ad hoc group.
No formal vote. No red tape. Just a shared goal: don’t get wiped out.
Together, they hired shared counsel, presented a unified front in negotiations, and demanded a seat at the restructuring table. The result? Better terms, faster recoveries, and real influence over how the reorganization plan was shaped.
None of them had the power alone. But together, they became impossible to ignore.
Forming an ad hoc creditor group isn’t about making noise. It’s about making sense. When multiple creditors share a similar claim type—like unpaid vendors, unsecured suppliers, or former service providers—coordinating can:
Lower legal costs
Increase negotiating power
Influence court proceedings without needing formal committee inclusion
And most importantly, it gives you a voice.
You don’t need millions at stake. You need alignment, intent, and the right support.
We’ve seen this work across different jurisdictions from Californida to Illinois and Florida to New Jersey. It’s especially effective when the company filing tries to control the narrative—because an ad hoc group, unlike a court-appointed committee, can be nimble, fast, and strategic.
There’s a saying in bankruptcy: "Whoever shows up first, wins more." But it’s not just about speed—it’s about showing up together.
White Knight Restructuring exists to help smaller creditors organize before they’re steamrolled. We help you:
Understand your rights and claim type
Find other creditors in similar positions
Build a strategic position—fast
We don’t just explain the process. We join the fight with you.
So if you’re watching a company head into bankruptcy, and you think your voice won’t matter—think again. You don’t need a billion-dollar claim. You need a group. You need a plan.
