In recent times, Special Purpose Acquisition Companies (SPACs) have emerged as an effective financial instrument touting global reach and application, consequently, has the possibility of integrating them into the Indian insolvency framework under the Insolvency and Bankruptcy Code, 2016 (IBC). SPACs, which are formed to raise capital through IPO, for a possible merger or acquisition offers better and practical approach to rescue a corporate entity. Their structure, such as pre-determined capital and a time bound process for acquisition are in line with the framework of the IBC, which enforces a time limit for disposal of distressed assets. Several approaches may be taken to address insolvency with the help of SPACs. Firstly, they offer time bound and speedy resolution by having availability of capital for acquisition, which support speedy transaction and reduce the delay which often erode the value of the distressed asset. This demonstrates the focus of the IBC, of resolving insolvency and repayment to creditors in a span of 330 days without extending for any further long-term durations, which cause loss in the recovery of assets in the case of liquidation. Secondly, SPACs can also bring an alternative solution to liquidation by infusing fresh capital to revive the distressed company, especially the inclusion of SPACs into “the Scheme of Arrangement” offering a formal structure for corporate restructuring of the financially distressed organization, maximizing the interest of the creditors and shareholders. SPAC is able to purchase an inoperative firm and acquire the enterprise preserving jobs and running the business acting as a “White Knight”, an objective sought under the IBC. SPACs also provide investor protection during the insolvency process. They may provide higher returns for creditors and shareholders, which are healthier than what is realizable in liquidation, where recovery rates as typically low. SPACs improve the ability of creditors to find use for the distressed assets in a more quick fashion ensuring adequate and swift resolution. For such vertically oriented industries that are in distress in certain sectors, SPACs provide appropriate capabilities and capital. In each of these sectors, SPACS can make structured investments, turn around, and grow distressed companies instead of just meeting the exigency of an immediate solution. To conclude, it is of significant value that in the realm of the corporate restructuring, SPACs come across as a favourable means of enhancing the efficacy of the existing insolvency regime in the country and more particularly that of the IBC. A plan to integrate SPACs under the present legislature as a potential resolution mechanism will aid in enhancing India’s ability to deal with intricate insolvency cases, especially at the time of Scheme of Arrangement under IBC, 2016..