Introduction
Parliament passed amendments to the Insolvency and Bankruptcy Code last week. The headlines focused on faster timelines, a new creditor-initiated framework, and long-overdue provisions on group insolvency. For a particular category of business – mid-market companies carrying meaningful receivables exposure to a customer or counterparty, what matters most in those amendments is: resolution professionals now have enhanced statutory powers to determine the value of claims during CIRP. The discretion that already existed has been formalised and expanded.
If your company has a customer currently under financial stress, that change is worth pausing on.
The inflection point
A counterparty enters insolvency. The public announcement goes out. Your finance team files the claim – invoices attached, outstanding amounts listed, forms submitted on time. The resolution professional publishes the list of admitted creditors. Your company either doesn’t appear on it, or appears in a
