{"id":18061,"date":"2026-09-29T15:40:45","date_gmt":"2026-09-29T13:40:45","guid":{"rendered":"https:\/\/www.augelegalfiscal.com\/insolvency-mediation-andorra\/"},"modified":"2026-10-01T16:27:11","modified_gmt":"2026-10-01T14:27:11","slug":"insolvency-mediation-andorra","status":"publish","type":"post","link":"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/","title":{"rendered":"Insolvency Mediation in Andorra: What It Is and How It Can Help in Negotiations"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">The term <\/span><b>insolvency mediation<\/b><span style=\"font-weight: 400;\"> can be used to refer to <\/span><b>mediation applied to disputes between a company in financial difficulty and its creditors<\/b><span style=\"font-weight: 400;\">. At an early stage, this tool can make it easier to negotiate deadlines, payment terms or other consensual solutions, always within the limits set by the applicable legislation.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\">Mediation can take place on a contractual basis or within court proceedings.<\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">An important clarification is needed here: in Andorra, &#8220;insolvency mediation&#8221; <\/span><b>is not set up as a standalone or specific insolvency procedure<\/b><span style=\"font-weight: 400;\">. Mediation as regulated by Llei 3\/2018, of 22 March, on mediation can be used to facilitate certain negotiations between debtors and creditors, without prejudice to the obligations and procedures laid down by Andorran law on cessation of payments and bankruptcy (fallida).<\/span><\/p>\n\n<p class=\"wp-block-paragraph\">Understanding how these two pieces fit together is crucial for any company operating in Andorra that is facing financial strain.<\/p>\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #8f2b2f;color:#8f2b2f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #8f2b2f;color:#8f2b2f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#What_is_insolvency_mediation\" >What is insolvency mediation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#Mediation_in_Andorra_Llei_32018\" >Mediation in Andorra: Llei 3\/2018<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#Business_insolvency_in_Andorra_arranjament_judicial_and_fallida\" >Business insolvency in Andorra: arranjament judicial and fallida<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#How_mediation_helps_a_company_in_difficulty\" >How mediation helps a company in difficulty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#Advantages_and_limits_of_the_negotiated_route\" >Advantages and limits of the negotiated route<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#What_to_do_if_your_company_in_Andorra_is_in_difficulty\" >What to do if your company in Andorra is in difficulty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.augelegalfiscal.com\/en\/insolvency-mediation-andorra\/#Frequently_asked_questions\" >Frequently asked questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_insolvency_mediation\"><\/span>What is insolvency mediation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">In a business context, mediation can be applied to certain disputes arising from financial difficulties or from the relationship between a company and its creditors. Its defining feature is the involvement of an <\/span><b>independent, impartial and neutral mediator<\/b><span style=\"font-weight: 400;\"> who does not impose a solution (unlike a judge or an <\/span><a href=\"https:\/\/www.augelegalfiscal.com\/en\/the-arbitration\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">arbitrator<\/span><\/a><span style=\"font-weight: 400;\">), but instead facilitates dialogue between the parties so that they themselves can reach an agreement.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">The process can facilitate agreements on <\/span><b>payment deferrals, repayment schedules, debt reductions<\/b><span style=\"font-weight: 400;\"> or other negotiated measures, provided that their content falls within the parties&#8217; power of disposal under the law and is accepted by the parties concerned.<\/span><\/p>\n\n<div style=\"height:18px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<section class=\"cta-section\">\r\n <!-- Title --><br\/>\r\n <span class=\"cta-title\">Business mediation: how to resolve company disputes without going to court<br\/>\r\n<\/span><p><\/p>\r\n<p> <!-- Description --><\/p>\r\n<p class=\"cta-description\">\r\nFind out what business mediation is, when it makes sense and how it works step by step to resolve your company&#8217;s disputes without going to court.\r\n <\/p>\r\n<p> <!-- Button --><br\/>\r\n <a class=\"cta-button\" href=\"https:\/\/www.augelegalfiscal.com\/en\/business-mediation\/\"><br\/>\r\n  Read article<br\/>\r\n <\/a><br\/>\r\n<\/p><\/section>\n\n<div style=\"height:18px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mediation_in_Andorra_Llei_32018\"><\/span>Mediation in Andorra: Llei 3\/2018<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Andorra regulates mediation through Llei 3\/2018, of 22 March. As a general rule, it can apply to matters in which the parties are free to dispose of their rights and obligations under the applicable legislation. In the business sphere, this framework makes it possible to use mediation to facilitate certain negotiations and <\/span><a href=\"https:\/\/www.augelegalfiscal.com\/en\/business-mediation\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">disputes between companies<\/span><\/a><span style=\"font-weight: 400;\">, professionals and creditors.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\">The law rests on a set of principles that explain why it is useful in insolvency scenarios:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><b>Voluntariness and good faith<\/b><span style=\"font-weight: 400;\">: no one is obliged to mediate or to accept an agreement they are not happy with.<\/span><\/li>\n\n\n\n<li><b>Confidentiality<\/b><span style=\"font-weight: 400;\">: the parties, the mediators and any experts involved are bound by a duty of confidentiality regarding the information they learn during the process, subject to the exceptions provided for by law.<\/span><\/li>\n\n\n\n<li><strong>Impartiality and independence<\/strong>: the mediator does not act on behalf of either party.<\/li>\n\n\n\n<li><b>Equality of the parties<\/b><span style=\"font-weight: 400;\">: the process must ensure that all parties can take part on an equal footing and that the balance between their positions is preserved.<\/span><\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">On this basis, mediation makes it possible to <\/span><b>structure a negotiation<\/b><span style=\"font-weight: 400;\"> that would otherwise be scattered across separate one-to-one conversations with each creditor. If an agreement is reached, its content is defined and accepted by the parties themselves.<\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_insolvency_in_Andorra_arranjament_judicial_and_fallida\"><\/span>Business insolvency in Andorra: arranjament judicial and fallida<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Andorra has its own insolvency framework, which <\/span><b>differs from UK insolvency law<\/b><span style=\"font-weight: 400;\"> and its procedures, such as administration, company voluntary arrangements (CVAs) and liquidation under the Insolvency Act 1986. The general Andorran regime on cessation of payments is based on the <\/span><b>Decree of 4 October 1969 (Decret del 4 d\u2019octubre de 1969)<\/b><span style=\"font-weight: 400;\">, as subsequently amended. Once a cessation of payments has been declared, the batlle (first-instance judge) may order an <\/span><b>arranjament judicial<\/b><span style=\"font-weight: 400;\"> (judicial arrangement) if it considers that the debtor is in a position to put forward a serious proposal and that the business or company has prospects of recovery. If these conditions are not met, the <\/span><b>fallida<\/b><span style=\"font-weight: 400;\"> (bankruptcy) route applies.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\">For this reason, each situation must be analysed in light of the legislation in force and the specific circumstances of the debtor.<\/p>\n\n<p class=\"wp-block-paragraph\">Before a general cessation of payments occurs, early negotiation with creditors can make it possible to explore voluntary solutions<\/p>\n\n<div style=\"height:18px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Criterion<\/td><td>Mediation (Llei 3\/2018)<\/td><td>Arranjament judicial<\/td><td>Fallida<\/td><\/tr><tr><td>Objective<\/td><td>Negotiated agreement with creditors<\/td><td>Reach a concordat or conveni where there are prospects of recovery<\/td><td>Liquidate the assets<\/td><\/tr><tr><td>Nature<\/td><td>Contractual or judicial; based on the voluntary nature of the agreement<\/td><td>Judicial<\/td><td>Judicial<\/td><\/tr><tr><td>Business continuity<\/td><td>May form part of the agreed solution<\/td><td>May continue if the conditions for the arranjament are met<\/td><td>Mainly geared towards liquidating the assets<\/td><\/tr><tr><td>Confidentiality<\/td><td>High<\/td><td>Limited<\/td><td>Limited<\/td><\/tr><\/tbody><\/table><\/figure>\n\n<div style=\"height:18px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_mediation_helps_a_company_in_difficulty\"><\/span>How mediation helps a company in difficulty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">At an early stage, it allows <\/span><b>deadlines and terms to be renegotiated with creditors<\/b><span style=\"font-weight: 400;\"> before cash-flow pressure becomes structural. When the situation is already delicate, it helps build the consensus needed for an orderly agreement, instead of a string of unconnected claims.<\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_and_limits_of_the_negotiated_route\"><\/span>Advantages and limits of the negotiated route<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">Mediation can facilitate a more flexible and structured negotiation, under the confidentiality regime provided for by law and with the parties retaining control over the content of any agreement. It can allow certain negotiations to take place confidentially before insolvency proceedings are opened.<\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">It also offers flexibility to design tailored solutions (for example, realistic payment schedules or partial write-offs). By maintaining the relationship with creditors, it supports business continuity.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Its limits are equally clear: <\/span><b>it requires all parties to be willing, it does not guarantee a result if no agreement is reached<\/b><span style=\"font-weight: 400;\"> and it must always be backed by a rigorous technical analysis of the company&#8217;s <\/span><b>viability<\/b><span style=\"font-weight: 400;\">. That is why it works best as part of a comprehensive legal and financial strategy, not as a stand-alone measure.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Finally, agreements reached through mediation are binding on those who sign them, but <\/span><b>they cannot be used to circumvent the mandatory rules of insolvency proceedings<\/b><span style=\"font-weight: 400;\"> or to affect the rights of third parties beyond what the law allows.<\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_do_if_your_company_in_Andorra_is_in_difficulty\"><\/span>What to do if your company in Andorra is in difficulty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">The first step is to <\/span><b>analyse the company&#8217;s financial position<\/b><span style=\"font-weight: 400;\">, its ability to generate cash, the volume and maturity of its obligations and its prospects of continuity. Based on that diagnosis, the different options available can be assessed.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">From there, legal support makes all the difference. At Aug\u00e9, we analyse these situations from both a legal and a business perspective, assessing the scope for negotiating with creditors as well as any obligations that may arise under Andorran law on cessation of payments. Where the situation calls for court action, the analysis is coordinated with our <\/span><a href=\"https:\/\/www.augelegalfiscal.com\/en\/dispute-resolution-ligitation\/\"><span style=\"font-weight: 400;\">dispute resolution and litigation team<\/span><\/a><span style=\"font-weight: 400;\">. For companies that need ongoing, preventive advice, we also offer an <\/span><a href=\"https:\/\/www.augelegalfiscal.com\/en\/lawyer-in-house-andorra\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">in-house lawyer<\/span><\/a><span style=\"font-weight: 400;\"> model. In fact, many of these disputes can be avoided with a solid contractual foundation, as we explain in our analysis of the legal risks arising from poorly drafted contracts.<\/span><\/p>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">If your company is facing cash-flow pressure or difficulties in meeting its payment obligations, acting early gives you more room to negotiate with creditors. <\/span><a href=\"https:\/\/www.augelegalfiscal.com\/en\/contact\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Contact our team<\/span><\/a><span style=\"font-weight: 400;\"> to review your situation.<\/span><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_asked_questions\"><\/span>Frequently asked questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<h3 class=\"wp-block-heading\">Is mediation also suitable for self-employed professionals and small businesses in Andorra?<\/h3>\n\n<p class=\"wp-block-paragraph\">Yes. Mediation can also be used in disputes involving professionals, self-employed individuals or small businesses, provided that the matter can be the subject of mediation under Llei 3\/2018. Whether it is suitable will depend on the specific situation, the type of obligations involved and the parties&#8217; willingness to negotiate.<\/p>\n\n<h3 class=\"wp-block-heading\">Is an agreement reached through mediation binding and enforceable?<\/h3>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">A mediation agreement is binding on the parties who sign it. It can also become an <\/span><b>enforceable title<\/b><span style=\"font-weight: 400;\"> once it is formalised as a public deed before a notary or approved by a court, in accordance with Llei 3\/2018.<\/span><\/p>\n\n<h3 class=\"wp-block-heading\">Who can act as a mediator in Andorra?<\/h3>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">To practise as a mediator in Andorra, you must meet the requirements laid down in Llei 3\/2018 and be <\/span><b>registered in the Registre de Mediadors<\/b><span style=\"font-weight: 400;\"> (Register of Mediators). Among other requirements, the law calls for a higher education qualification and specific training in mediation under the terms set out by law, as well as continuing training.<\/span><\/p>\n\n<h3 class=\"wp-block-heading\">How does the Andorran insolvency regime differ from UK insolvency procedures such as administration or a CVA?<\/h3>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Andorra does not apply UK insolvency law; it has its <\/span><b>own legal framework<\/b><span style=\"font-weight: 400;\"> on cessation of payments. The general Andorran regime provides for arranjament judicial and fallida, each with its own rules and procedures. That is why an insolvency situation in Andorra must be analysed under the law of the Principality.<\/span><\/p>\n\n<h3 class=\"wp-block-heading\">Can mediation be used if the company is already in insolvency proceedings?&#13;\n<\/h3>\n\n<p class=\"wp-block-paragraph\"><span style=\"font-weight: 400;\">Llei 3\/2018 provides for the possibility of mediation within court proceedings. However, once arranjament judicial or fallida proceedings have begun, <\/span><b>the specific rules of the Andorran insolvency regime must be respected<\/b><span style=\"font-weight: 400;\">. Whether mediation can be used for particular disputes will have to be assessed in light of the stage and specific circumstances of the proceedings.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The term insolvency mediation can be used to refer to mediation applied to disputes between a company in financial difficulty and its creditors. At an early stage, this tool can make it easier to negotiate deadlines, payment terms or other consensual solutions, always within the limits set by the applicable legislation. Mediation can take place [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":17992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-18061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auge"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/18061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/comments?post=18061"}],"version-history":[{"count":2,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/18061\/revisions"}],"predecessor-version":[{"id":18070,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/18061\/revisions\/18070"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media\/17992"}],"wp:attachment":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media?parent=18061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/categories?post=18061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/tags?post=18061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}