Arbitration and insolvency: the effect of a moratorium

In Sapura Fabrication Sdn Bhd and Others v GAS [2025] SGCA 13 the Singapore Court of Appeal discussed at length the principles to be applied where a company in administration or equivalent insolvency proceedings which imposed a moratorium on claims against it faced claims in arbitration. The question was whether the arbitration claims should be carved out from the moratorium and allowed to proceed.

The parties in fact settled the case before the judgment of the Court of Appeal was issued, but it was thought appropriate by the court to publish the judgment so that the legal position could be clarified.