By nature, insolvency involves the public centralisation of disputes, utilising a standard statutory framework. Arbitration, on the other hand, prioritises flexibility and party autonomy, providing for the decentralisation and privatisation of dispute resolution. However, parties are increasingly finding arbitration an effective tool to save time and costs for larger and more complex restructuring proceedings, giving rise to conflicts between the insolvency and arbitration regimes.
To reconcile the two, the Singapore International Arbitration Centre (“SIAC“) launched the SIAC Restructuring and Insolvency Arbitration Protocol (“Protocol“) on 26 August 2025, which took effect on the same day. The Protocol introduces a specially designed mechanism for the resolution of restructuring and insolvency-related disputes that parties may choose to adopt. Essentially, the Protocol adapts SIAC’s Arbitration Rules (“SIAC Rules“) for the time being in force with modifications to increase efficiency and reduce the time taken for the arbitration. Its key features include:
- the truncation of certain timelines in the existing SIAC Rules, such as for the filing of the response to the notice of arbitration and for the nomination of arbitrators;
- aligning with the restructuring and insolvency context by way of prompting tribunals to consider questions of joinder of third parties or potential jurisdictional challenges, among other matters;
- specifying a default seat of arbitration and governing law; and
- providing that a sole arbitrator shall be appointed by default.
In this Update, we delve into the applicability of the Protocol and its key features, together with complementary tools such as model clauses for parties’ adoption and the creation of the SIAC Specialist Panel for Restructuring and Insolvency Disputes.
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