Bankruptcy / Insolvency Law
Operational Creditor
A creditor to whom a company owes a debt arising from the supply of goods or services, or employment dues, rather than a financial loan.
Operational creditors — such as suppliers, vendors, and employees owed dues — can also initiate insolvency proceedings against a defaulting company, though their role and voting rights in the resolution process differ somewhat from those of financial creditors.
A common example is a vendor whose invoices remain unpaid beyond the threshold amount and time specified under insolvency law.
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