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IBBI may assign MSME dues higher priority in insolvency cases
Financial Express Lucknow
|December 13, 2025
CREDITORS CASE
THE BANKRUPTCY BOARD is planning to review the waterfall mechanism under the Insolvency and Bankruptcy Code (IBC), 2016, to assign a higher priority to micro, small and medium enterprises (MSMEs) during the distribution of proceeds from the sale of the liquidation of assets.
“The idea to prioritise MSME dues under IBC has been around for quite some time but the government is finally moving forward with a study that will make for a stronger case to classify MSME dues on par with secured creditors,’ said an official.
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