Creditor-initiated insolvency resolution process requires creditor approval, debtor notice, and blocks parallel insolvency filings during the process period.

A financial creditor belonging to a notified class of financial institutions may initiate a creditor-initiated insolvency resolution process against a corporate debtor on default, subject to prescribed conditions. The creditor must obtain approval from financial creditors representing at least fifty-one per cent in value, notify the corporate debtor and allow at least thirty days for representation, and then may appoint a resolution professional if the requirements are met and no disciplinary proceedings are pending. The process begins on public announcement, and no corporate insolvency resolution process or pre-packaged insolvency resolution process may be filed or admitted during the process period.

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