Mediation settlement agreement under the Singapore convention as a cross-border restructuring instrument

Abstract

Since its adoption, the UN Convention on Mediation has been signed by 58 states. It provides an important legal framework for resolving commercial disputes and allows for the cross-border enforcement of such agreements. The less formal, less expensive, and more confidential nature of the process makes its use even more attractive to potential parties compared to other instruments. Once a settlement agreement is reached, the Convention also enables the parties to enforce it without the need for complex recognition proceedings. Due to these characteristics, mediation can be used as an instrument for restructuring and preventing insolvency. The purpose of this paper is to highlight the advantages of using mediation in cross-border restructuring under the rules set by the UN Convention on Mediation. The authors analyze the application of mediation agreements in practice throughout each stage of the process, as well as the advantages and disadvantages of mediation and their effects on cross-border restructuring proceedings. This paper employs dogmatic, normative, comparative, and case study methods.

Keywords

• Singapore Convention
• settlement agreement
• mediation
• cross-border proceedings
• restructuring