Creditor-Initiated Insolvency Resolution Process (CIIRP)
The 2026 Reform
The CIIRP (Sections 58A–58K, new Chapter IV-A) is the signature reform of the 2026 Amendment. Unlike CIRP (where the debtor loses management control immediately upon admission), the CIIRP uses a debtor-in-possession (DIP) model.
- Initiation: A notified financial creditor must obtain approval from other notified financial creditors holding at least 51% of the debt value; the creditor must then inform the company and give it at least 30 days to respond/repay.
- Timeline: The CIIRP must be completed within 150 days, extendable once by up to 45 days (total maximum: 195 days).
- Debtor-in-possession: The corporate debtor's existing management continues to operate the business during CIIRP (unlike CIRP where an IRP/RP takes over).
- Conversion: CIIRP can be converted to a standard CIRP if the debtor fails to cooperate or the process breaks down.
- Applicable categories: The categories of corporate debtors and financial creditors eligible for CIIRP are yet to be notified by the Central Government separately — providing flexibility for phased implementation.
● Tracked since March 30, 2026 · last seen May 26, 2026 · updates as the daily brief publishes
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