The airline insolvency framework in India is still in need of a solution. The evolution has been more of a trade of one problem for another.

The pre-pack insolvency framework was crafted with the best of intentions. It aimed to protect MSMEs from the procedural weight of CIRP while ensuring that their businesses could be salvaged quickly and quietly. But in practice, it remains a tool too complex, too exclusive, and too disconnected from how MSMEs actually function.

The author analyses the possible reasons for the low rate of initiation under the pre-pack framework.