The Insolvency and Bankruptcy Board of India (IBBI) and the World Bank jointly organized a Workshop on Insolvency of MSMEs on March 11, 2025, at India International Centre, New Delhi. The event brought together policymakers, industry experts, and international specialists to discuss MSME insolvency frameworks, best practices, and policy recommendations.
Key Highlights:
Opening Address: Mr. Ravi Mital, Chairperson, IBBI, underscored the significant role of MSMEs in India’s economy and the need for a specialized insolvency framework. He highlighted the introduction of the Pre-Packaged Insolvency Resolution Process (PPIRP) under the Insolvency and Bankruptcy Code (IBC) to ensure a faster, cost-effective, and accessible resolution process tailored for MSMEs.
International Best Practices: Ms. Antonia P. Menezes, Senior Financial Sector Specialist at the World Bank, presented global best practices for MSME insolvencies, as outlined under the World Bank’s Principles for Effective Insolvency and Creditor and Debtor Regimes. She also commended IBBI’s transparency and data dissemination through its quarterly newsletters.
Comparison with U.S. Insolvency Laws: Mr. Steven Kargman, Founder and President of Kargman Associates, provided insights into Subchapter V of Chapter 11 under the U.S. insolvency framework, explaining its implementation and relevance for MSMEs.
Analysis of PPIRP & Future Recommendations: Mr. Joseph Spooner, Associate Professor at LSE Law School, conducted a session analyzing PPIRP, comparing it with international insolvency frameworks, and offering recommendations for its improvement.
Panel Discussions: Experts from IBBI, the Department of Financial Services (Ministry of Finance), and international insolvency specialists engaged in discussions on global best practices, legal frameworks, and policy recommendations to enhance MSME insolvency resolution mechanisms in India.
The workshop provided key insights into international legal perspectives, policy measures, and strategies to further strengthen India’s MSME insolvency framework in alignment with global best practices.
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