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 Mediation Procedure.
Parties pay the mediation fees below for the Mediation Procedure.
|MEDIATION PROCEDURE FEE
(For disputes above $60,000)
|A non-refundable filing fee of $270.00 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||$972.00 per party per day|
|Above $100,000 and up to $250,000||$1,296.00 per party per day|
|Above $250,000 and up to $500,000||$2,970.00 per party per day|
|Above $500,000 and up to $1,000,000||$3,510.00 per party per day|
|Above $1,000,000 and up to $2,500,000||$4,590.00 per party per day|
|Above $2,500,000 and up to $5,000,000||$5,670.00 per party per day|
|Above $5,000,000 and up to $10,000,000||$6,966.00 per party per day|
|Above $10,000,000 and up to $20,000,000||$8,370.00 per party per day|
|Above $20,000,000 and up to $50,000,000||$9,990.00 per party per day|
|Above $50,000,000||$12,150.00 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 Mediation Procedure rules and fees on the Documents & Forms page: