The Singapore Restructuring and Insolvency Protocol – a cost and time efficient alternative for arbitrating insolvency disputes

The Singapore International Arbitration Centre (SIAC) has recently adopted a new Restructuring and Insolvency Arbitration Protocol (RIA Protocol). The Protocol offers a framework for resolving disputes arising in restructuring, debt adjustment, or insolvency contexts, and is designed to be flexible for use in both formal insolvency proceedings and situations where no such proceedings are underway.

It enables Insolvency Practitioners, who might otherwise face lengthy  and expensive legal proceedings in national courts to offer an alternative to Defendants / Respondents -  to resolve those claims through arbitration within a framework designed specifically for parties in insolvency-related situations.

Applicability of the Protocol

• The Protocol supports arbitration agreements made in the context of restructuring or insolvency, including those not dependent on formal insolvency proceedings.

• It can be used for disputes involving solvent entities, in anticipation of insolvency, or upon the recommendation of a court or insolvency officeholder.

It is permissive, not prescriptive, as to the scenarios in which it may be invoked.

The Protocol contains truncated timelines and enables the Tribunal to flexibly conduct the case in a fair manner within the following timelines:

• The Protocol adapts the SIAC Rules (currently the 2025 edition) for insolvency contexts, making some key modifications to timelines to ensure efficiency:

• Response to notice of arbitration: 7 days.

• Agreement on sole arbitrator: 14 days.

• Nomination of co-arbitrator in three-member tribunals: 7 days.

• Joint nominations in multiple party cases: 15 days.

• Dealing with arbitrator challenges: expedited timelines.

• Final award deadline: 6 months from tribunal constitution.

• Draft award to Registrar: within 30 days of last substantive submission.

Parties can choose whichever seat of the arbitration they wish (e.g. London - if the proceedings / parties are in in England) and whichever law they wish (e.g. English law).  Singapore is the default seat and Singapore law the default governing law, unless otherwise agreed.

Appointment of arbitrators favours a sole arbitrator unless complexity or other factors justify three. The President of SIAC may appoint specialists from the SIAC Specialist Panel, but is not obliged to do so.

Conduct of Arbitrations

• Tribunals are encouraged to hold a case management conference within seven days of appointment.

• Issues for early discussion include timelines, interlocutory applications, joinder of third parties (notably creditors and stakeholders), preliminary issues, potential for settlement or mediation, and reporting requirements to courts or insolvency bodies. 

Mediation is expressly encouraged: parties may suspend proceedings for three weeks to attempt mediation. Successful mediation can result in a consent award, subject to legality and public policy checks.

• Jurisdictional objections should be handled with reference to the Protocol and applicable law, either as a preliminary matter or in the final award.

Tribunals should consider the appropriateness of exercising powers such as consolidation, joinder, interim relief, early dismissal, and security for costs.

Timeliness and Efficiency

• Final awards should be made within six months unless extended by agreement or the Registrar.

• Tribunals may set limits on submissions, document requests, and witness statements to ensure efficient and fair proceedings proportionate to the dispute's complexity.

• Procedures may be adjusted to align with related insolvency proceedings and their requirements.

Confidentiality and Reporting

• Tribunals and parties should discuss confidentiality measures, particularly regarding reporting to courts or third parties and disclosure in related proceedings.

General Provisions

• Matters not covered by the Protocol are governed by the SIAC Rules and applicable law.

• The Protocol includes provisions for cost deposits and their payment.  The filing fee is approximately £1,900 and the Tribunal fees are fixed in accordance with the value of the dispute.

• Model arbitration clauses are provided for parties wishing to adopt the Protocol in contracts.

Conclusion

The SIAC RIA Protocol establishes a clear, efficient, and flexible framework for arbitrating disputes in restructuring and insolvency contexts, emphasising time-efficiency, the encouragement of mediation, and adaptability to the needs of parties and the realities of insolvency proceedings.