A recent study commissioned by India's insolvency regulator emphasizes the need for auction reforms to enhance the resolution of bankrupt micro, small, and medium enterprises (MSMEs). Conducted by the Management Development Institute in Gurgaon, the study advocates for a single objective auction model that awards the bidder offering the highest recovery. This model should be paired with a quasi-absolute priority rule that prioritizes financial creditors' claims up to the liquidation value of the distressed firm, ensuring fair distribution of any additional value realized. Furthermore, the study calls for replacing the existing 'no impairment' clause in the pre-pack insolvency resolution process with a more flexible, principle-based allocation approach. It also highlights the importance of systematically collecting and publishing data on pre-admission recoveries, separating avoidance transaction reviews from the main resolution process, and mandating structured recording of operational creditor invoices of ₹1 crore (approximately $120,000 USD) and above. These reforms aim to streamline the insolvency framework for MSMEs, ultimately improving recovery rates and reducing procedural costs.