Arbitration and insolvency embody, to some extent, countervailing legal policies. Courts in many jurisdictions have grappled with the extent to which claims involving an insolvent company should be permitted to be resolved through arbitration. In the October 2023 decision of Indian Oil Corporation Ltd v Arcelor Mittal Nippon Steel India Ltd (“Indian Oil”), the Delhi…

On 19 June 2024, the Privy Council issued its decision in Sian Participation Corp (In Liquidation) v Halimeda International Ltd [2024] UKPC 16, holding that winding up proceedings should not be automatically stayed or dismissed by the court where the disputed debt is subject to an arbitration agreement. Instead, the correct test to be applied…

The impact of arbitration clauses on winding-up proceedings (i.e., if both are present, when and how can the former get prioritized over the latter) has long been an issue with diversified practices throughout various jurisdictions. With the judgment by the Hong Kong Court of Appeal (“HKCA”) in Re Simplicity & Vogue Retailing (HK) Co Limited…

In the ever-evolving landscape of international commercial disputes, the co-existence of arbitration and insolvency-related proceedings has become a focal point. This comparative piece delves into the legal position in three key jurisdictions – Singapore, the United Kingdom, and India – and focuses on the pro-arbitration approach of deferring to the arbitral tribunal and staying (or…

For the last couple of years Working Group V at UNCITRAL has been working on a project dedicated to the applicable law in insolvency proceedings. The law governing the effects of insolvency in arbitration has become one of the most contentious topics in the negotiations. The draft provisions subject to discussion in the 63rd session,…

Following the morning session which explored the geopolitics of international arbitration, the next generation of dispute resolution and the freshly-minted draft SIAC Rules (see Part 1), the afternoon session probed into regional and topical dimensions of international arbitration through six technologically-driven and interactive panel discussions.   I. Regional Developments, Trends & Forecasts   Illuminating Top…

The Singapore International Arbitration Centre (“SIAC”) held the SIAC Symposium, its flagship conference, during the Singapore Convention Week on 28 August 2023. The SIAC Symposium featured a conversation with Minister K Shanmugam, SC (Minister for Home Affairs and Minister for Law, Singapore) and a plenary address by Justice Judith Prakash (Justice of the Court of…

The increased globalization of business and the rising popularity of arbitration as a standard method of alternative dispute resolution (“ADR“) has fostered an intersection of arbitration and insolvency. Arbitration is increasingly used to resolve various matters related to insolvency, such as cross-border debt recovery and disputes between creditors and debtors in insolvency proceedings. In the…

Since 2020 insolvency activity in Spain slowed down because of the moratorium declared by the Spanish government in the wake of Covid-19, under which the obligation to file for insolvency was suspended until 30 June 2022. Perhaps unsurprisingly, official statistics for the third quarter of 2022 showed a dramatic increase in the insolvency declarations within…

In 2022, Canadian courts revisited some old issues, like the timeframe for recognizing foreign arbitral awards, but also faced new dilemmas, such as the impact of sanctions on recognition and enforcement. Fostering Canada’s pro-arbitration standing, courts were generally adamant about referring commercial parties to arbitration, although a few exceptions that arose in insolvency contexts are…

On November 10, 2022, the Supreme Court of Canada issued its decision in Peace River v Petrowest. Insolvency and arbitration practitioners alike eagerly anticipated the decision, hoping it would provide clarity on how to resolve challenges that arise when these two specialist areas of practice come together in one case.  In this post, we review…

Allen & Overy’s webinar on the second day of Hong Kong Arbitration Week 2022 brought together six practitioners from the fields of arbitration, insolvency and enforcement to discuss the key practical and strategic considerations when acting for and against parties in financial distress. Guided through a hypothetical case study involving jurisdictions such as Hong Kong,…

Insolvency-related claims arising from contracts containing arbitration clauses continue to culminate in intriguing cases before the England and Wales High Court (a previous post on the Blog analysed the Riverrock Securities Limited v International Bank of St Petersburg (Joint Stock Company) [2020] EWHC 2483 (Comm)). In a recent case titled The Deposit Guarantee Fund for…

The economic havoc wreaked by the Covid-19 pandemic has resulted in a 10-year high of corporate bankruptcies in the United States in 2020. While bankruptcy levels across Europe have fallen amid the pandemic, a sharp spike in corporate bankruptcies is expected as economic support programs phase out in the coming months. This will increase the…

On 24 December 2020, the New Brazilian Insolvency Act (“NBIA” – a slight misnomer, as the Act is in fact an amendment to an existing statute) was published in the official Brazilian gazette. The act implements important modifications in the field, including a few related to arbitration, which came into force on 23 January 2021….

COVID-19 has already destroyed many businesses, and insolvencies will only increase as governments withdraw temporary protections. Recent decisions highlight the potential for external administrators of these insolvent companies to use investment treaty arbitration to recover assets, even from the state that appointed the administrators. Generally, external administrators are appointed by directors, creditors or courts to…

On 23 September 2020, the England and Wales High Court (“High Court”) rendered its judgment in Riverrock Securities Limited v International Bank of St Petersburg (Joint Stock Company) granting Riverrock Securities Limited (“RSL”) an interim anti-suit injunction in respect of bankruptcy proceedings in Russia brought against RSL by the receiver of the International Bank of…

One of the many consequences of the Covid-19 pandemic and the world-wide economic crisis has been the sharp increase of insolvency filings before national courts. Latin America is no stranger to this situation, having been part of the surge in business insolvencies. Brazil, in particular, has been a recent insolvency hotspot within Latin America. This…

The economic downturn in Thailand has resulted in increased pressure on Thai debtors. Several banks have forecasted Thailand’s gross domestic product (GDP) to contract 8.1 percent in 2020 due to a more severe than expected COVID-19 pandemic and the containment measures implemented by governments in many countries including Thailand. Creditors who are party to an…

The intersection of arbitration and insolvency, ever since the onset of the pandemic, is becoming a topical area of focus. The Centre for International Legal Studies (an Austria based non-profit society) and Arbinsol (a platform dedicated to the research on arbitration and insolvency) have responded by organizing an ongoing series of “post-pandemic” webinars. The most…

The COVID-19 pandemic and the ensuing lockdowns have the legal community debating and exploring force majeure. That, however, does not rule out the imminent likelihood of international arbitration locking horns with domestic insolvency law. Arbitration agreements and subsequent awards may possibly be left redundant and award-holders remediless where insolvency proceedings are commenced in respect of…

In the recent decision of AnAn Group (Singapore) Pte Ltd v VTB Bank (Public Joint Stock Company) [2020] SGCA 33 (“AnAn“), the Singapore Court of Appeal found that when a debtor challenges a winding-up application on the basis of a disputed debt or cross-claim that is subject to an arbitration agreement, the court should apply…

One of David Guetta’s most famous songs is “When Love Takes Over”. Recent weeks have shown him that insolvency can also “take over”. The Commercial Court in Santander (Spain) ruled recently that an arbitration agreement signed by the agents of David Guetta ceased to produce effects due to the insolvency of the counterparty, the Spanish…

With over $3 billion invested by Vedanta Resources in Zambia since it became a shareholder in Konkola Copper Mines (KCM) in 2004, it is a less optimistic turn of events with Vedanta Resources and fellow shareholder, the government-owned Zambian State Mining Company ZCCM-IH (ZCCM), being at loggerheads in arbitration. In this post, we examine what…