International Journal of Scientific Research and Engineering Development

The year 2025 presents unprecedented challenges for global corporations as escalating macroeconomic volatility, rising interest rates, geopolitical uncertainty, and post-pandemic financial pressures intensify corporate distress across industries. This study examines how insolvency and restructuring mechanisms are evolving to safeguard financial stability in this volatile environment. Using a descriptive and analytical research design, data were collected from 110 insolvency professionals, restructuring consultants, corporate finance managers, and regulatory experts across diverse geographic regions. Findings reveal that hybrid restructuring models—integrating financial and operational reforms—significantly enhance corporate recovery prospects, while technology-driven tools such as AI-based prediction systems, digital courts, and automated documentation improve the speed and quality of insolvency resolution. Regression analysis shows that hybrid restructuring and technological interventions are strong predictors of successful outcomes, whereas macroeconomic instability remains a major driver of insolvency. The study concludes that corporate resilience in 2025 is increasingly dependent on proactive restructuring strategies, robust governance mechanisms, and modernized regulatory frameworks. It emphasizes the need for organizations, policymakers, and financial institutions to adopt integrated, technology-enabled approaches to manage distress effectively. The insights generated contribute to academic literature, support policy formulation, and provide actionable strategies for strengthening insolvency systems and enhancing financial stability in a rapidly evolving global market.