For a financial creditor, a stressed account is a race against time. Working capital dries up, customers drift away, suppliers tighten credit, and key employees leave – often long before a formal insolvency application is even filed. By the time CIRP begins, the business a creditor is trying to resolve may already be worth far less than it was when the first signs of stress appeared.
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 has responded to this reality by inserting a new Chapter IV-A – Sections 58A to 58K – creating the Creditor-Initiated Insolvency Resolution Process (CIIRP). This piece looks at what CIIRP changes, and why it matters more to bankers than to any other stakeholder in the system.