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Centre Ordinance Pushes Pre Packed Insolvency for MSMEs to Speed Restructuring Talks
Business
Published on 24 April 2026
Creditors approve a plan before insolvency officially begins
The Centre has promulgated an ordinance amending the Insolvency and Bankruptcy Code to introduce pre-packaged insolvency for MSMEs. Under the change, a firm prepares a restructuring plan in coordination with creditors before formal insolvency proceedings start. The goal is to reduce delays and overall costs by front-loading negotiations and speeding up resolution.
- IBC amendment brings pre-packaged insolvency for MSMEs
- Restructuring plans are readied with creditors before filing
- Expected to cut time and costs of insolvency resolution
- Aims to speed up outcomes for stressed small businesses
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times