This study, for the first time, critically examines whether the new Ethiopian insolvency regime protects creditors’ interests using six variables identified through a reflexive thematic analysis of interview data. As evident from global best practices and the results of the qualitative analysis, the identified variables used as benchmarks in this study are typical tools to protect creditors’ interests in the vicinity of or during insolvency. After a critical doctrinal analysis of the identified variables in Ethiopia in relation to global best practices and a thematic analysis of the interview data, the study found that the new Ethiopian insolvency regime is creditor-friendly. It is well equipped with the tools needed to protect creditors’ interests in the vicinity of or during insolvency, with few areas for further improvement. The new law has substantially addressed and improved the deficiencies of the old law, aligning creditor protection rights with relevant global guidelines and best practices. The study further emphasizes that safeguarding creditors’ interests is broader than good law, highlighting long-standing deficiencies in the existing insolvency practice and institutional framework. The study concludes that comprehensive protection of creditors’ interests during insolvency requires a robust legal framework and an effective institutional framework for its practical implementation, suggesting substantial legislative and institutional reform.