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ARTICLE · 28 JANUARY 2026

Arbitration vs Insolvency: Irish Courts Align With Sian Participation

William Fry LLP
William Fry LLP
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William Fry LLP

William Fry LLP

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In our previous article, When Arbitration Meets Insolvency: Navigating the Legal Crossroads, we explored the tension between arbitration clauses and insolvency proceedings, discussing the Privy Council's...

IrelandInsolvency/Bankruptcy/Re-Structuring
Ruairi Rynn
Ruairi Rynn
Fergus Doorly
Fergus Doorly
Gerard James
Gerard James
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In our previous article, When Arbitration Meets Insolvency: Navigating the Legal Crossroads, we explored the tension between arbitration clauses and insolvency proceedings, discussing the Privy Council's decision in Sian Participation Corp (In Liquidation) v Halimeda International Ltd [2024] UKPC 16.

In that case, the Privy Council clarified that arbitration agreements do not bar winding‑up petitions unless the debt is genuinely disputed on substantial grounds. This marked a decisive shift away from the earlier English approach in Salford Estates.

The Irish High Court (Court)  has now endorsed this approach in San Leon Energy PLC v Brightwaters Energy Ltd [2026] IEHC 1 (Kennedy J), providing clarity for Irish businesses and creditors on how arbitration clauses interact with statutory insolvency remedies.

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