Nature of dispute
Insolvency occurs when a company does not have enough funds to pay all its debts when they fall due. When a company is facing insolvency, they would ordinarily engage in debt restructuring. This is usually a complex process involving negotiations between multiple parties with conflicting interests and often entrenched positions.
Engaging alternative forms of dispute resolution is a useful process for all stakeholders such as debtors, financial creditors and/or insolvency administrators who desire to come to a quick and amicable solution in relation to continuity of the business and/or settlement of debt.
How we can help
Mediation is a voluntary process where a neutral third-party, the mediator, facilitates the disputants’ negotiation process for a private and amicable settlement.
Mediation can help to ease the pressures when a company is facing insolvency. A mediator can help the company and its creditors to come to an amicable agreement in a way that is more beneficial to all parties than forcing the company into insolvency.
For such disputes, parties can mediate under SMC’s Commercial Mediation Scheme (for claims above $60,000).
Parties pay the mediation fees below for the Commercial Mediation Scheme.
|COMMERCIAL MEDIATION SCHEME FEE
(For disputes above $60,000)
|A non-refundable filing fee of $267.50 is to be borne by each party, applicable to all mediations administered by the Singapore Mediation Centre.|
|Sum in dispute||Mediation fees|
|Above $60,000 and up to $100,000||$963 per party per day|
|Above $100,000 and up to $250,000||$1,284 per party per day|
|Above $250,000 and up to $500,000||$2,942.50 per party per day|
|Above $500,000 and up to $1,000,000||$3,477.50 per party per day|
|Above $1,000,000 and up to $2,500,000||$4,547.50 per party per day|
|Above $2,500,000 and up to $5,000,000||$5,617.50 per party per day|
|Above $5,000,000 and up to $10,000,000||$6,901.50 per party per day|
|Above $10,000,000 and up to $20,000,000||$8,292.50 per party per day|
|Above $20,000,000 and up to $50,000,000||$9,897.50 per party per day|
|Above $50,000,000||$12,037.50 per party per day|
|* The figures above are in Singapore dollars and inclusive of GST.|
Please note that if parties choose their own mediator(s), the selected mediator(s) may charge his/her commercial rates and the above mediation fee will not be applicable.
For more information, please refer to the Commercial Mediation Scheme mediation procedure and fees on the Documents & Forms page: