10 reasons why insolvency practitioners should consider ADR

Alternative Dispute Resolution (ADR) provides insolvency practitioners with a vast range of options when it comes to enforcing claims available to liquidators, administrators, receivers or trustees. Those options can extend from simple negotiation (assisted or not) to mediation, conciliation and arbitration.

Mediation in particular has become a very valuable tool for resolving disputes of all kinds, including those in the insolvency sphere. While the prospect of attending a mediation might once have been considered by courts and litigants to be a sign of weakness or vulnerability, this is no longer the case. Mediation has become a standard part of most litigation processes and it has been reported that approximately 60% of all disputes referred to mediation in the Australian superior court system settle.¹