Insolvency

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

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).

Fees

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:

To begin a dispute resolution process

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    Download the Commercial Mediation Scheme Request for Mediation form here.

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    Send the completed form to SMC by fax at +65 6333 5085 or email to enquiries@mediation.com.sg.

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    Payments should be made either via cheque or bank transfer. Cheque to be made payable to “Singapore Mediation Centre”.

For more information, please contact SMC at