Business mediation

Do you have business debts (VAT, social security contributions, rent, tax, banks, suppliers, bailiffs, etc.) that you can no longer repay? How can you avoid bankruptcy? Do you want to reduce your debts? Do you want to help your business in difficulty?

As reported by RTBF, ‘20% of companies that were healthy before the pandemic are now in serious financial difficulty’ (1), and this figure is likely to rise in the coming months.

That's why the Brussels-Capital Region,  through bMediation will help you to finance 75% of the costs of mediation (up to a maximum of €1,850 excluding VAT). You will then be able to apply for deferred payment on all your debts. Take advantage of these support schemes to avoid bankruptcy, such as the JRP (judicial reorganisation procedure) or business mediation.

Obtaining business mediation to find a solution to a dispute

The objective of business mediation is to find an arrangement between the company and its creditors, through a neutral party appointed by the court: the mediator.

Mediation is aimed at resolving rather simple financial situations that are limited in terms of creditors and amounts, or that require discreet intervention with certain targeted creditors. JRP is better suited to complex situations or chronic indebtedness . Mediation is voluntary, whereas JRP is collective and an agreement must be reached involving all creditors.

You would like us to submit an application to intervene in the costs of a company mediation:

If you wish to take charge of the business mediation request, you can begin by completing application for designation and sending it to:   ced.tefb@just.fgov.be  so that the commercial tribunal can appoint a mediator for you.

Secondly, when the company mediator is appointed, could you ask him or her to fill in this form so that you can benefit from this tool

Who can apply for a JRP/mediation?

Companies, NPOs and natural persons.

If you are a chartered accountant or lawyer, click this link .

Are you a mediator who has been appointed by the court? Please visit the bMediation website.

Difference between JRP, Business mediation and Bankruptcy

Both procedures are equally valid; they are simply better suited to some cases than others. To find out whether you should opt for mediation or PRJ, use the table below.

JRP or mediation?

To help you, we have put in place a short questionnaire which will only take a few minutes to complete, and which will help you to see things more clearly.

Is there any aid available to finance these procedures?

Yes, the Brussels Region, via BECI (JRP) or bMediation (business mediation), will help you to finance this aid up to a maximum of 75%. To benefit from the Region's aid, the company must, among other things, prove that it was viable on 31 December 2019.

What other conditions apply?

• Conducting business in Brussels,
• Being the manager with decision-making,
• No more than 3 bankruptcies in the last 5 years,
• No convictions in the preceding 5 years,
• Having positive equity

Apart from JRP and mediation, what other ways are there of reducing debt?

1. Borrowing, but that's not ideal when you're already in debt

2. Recapitulate, via family or friends for example

3. Disposing of assets

Are you a chartered accountant or lawyer?

You can submit a service request for your customer using this form.

It is important to know that the file you submit cannot be that of one of your firm's clients.

Business mediation in brief

Role of the mediator

The business mediator acts officially as an intermediary, certainly alongside the company director, but in the eyes of third parties he has an official mission with the objective of getting the company to think about mediation and long-term solutions that will work towards the company's recovery. Its role is to provide confidential support to the company's directors, thereby facilitating the reorganisation of all or part of the company's assets, debts or activities.

The mediator's mission is to bring the parties together and try to reach a legal agreement. The parties to the mediation agree who will pay the business mediator's fees. This is very often the company itself, as third parties sometimes agree to make major concessions, but not to pay the business mediator's fees. It is not uncommon for previous negotiations to have ended in a heated, conflictual or violent atmosphere. The mediator's role is to bring calm to the discussions, firmness without authoritarianism and organisation without rigidity. It is in this sense that the business mediator is appointed by the Commercial Tribunal, possibly on the proposal of the company requesting mediation. The business proposes the mission of the business mediator to the Tribunal, which very often approves it and appoints the person proposed.

It is also the Tribunal that determines the scope and duration of the mediator's assignment. If a dispute arises, the Tribunal will arbitrate the business mediator's fees. The business mediator's remit is therefore official pursuant to articles XX.36 to XX.39 of the Code of Economic Law. It can be adapted to any situation and the company may decide that the assignment should end, even before the end of the period set by the Tribunal. There is therefore considerable flexibility. Proposal for the appointment of a business mediator When the company does not know any mediators, associations active in Brussels represent and propose experts approved as business mediators (e.g. Bmediation or Belgian Senior Consultants).

Under the system set up by the Brussels-Capital Region, where part of the business mediator's fees are paid by the public authorities, it may be very useful to ask the Tribunal to appoint two mediators: a chartered accountant, who will diagnose the causes and circumstances of the company's difficulties and present a sound financial recovery plan, including cash flow projections; - a lawyer, who will analyse current contracts with third parties concerned by the mediation, including employees, and draft out-of-court agreements to be submitted, once signed, for approval by the company's Tribunal.

Differences with other mediators

There are also common law mediators covered by articles 1724 to 1737 of the Judicial Code. They are appointed by the Tribunal to carry out other tasks, but are not business mediators in the sense that they do not assist the company with reorganisation.

These traditional mediators are not covered by the Brussels-Capital Region Government's measure, but they can sometimes be a significant alternative. Whatever his title, the mediator's mission is to facilitate the reorganisation of the company and to reach agreements with two or more of the company's debtors or creditors, in order to unblock the situation and enable the company to make a healthy start.

Examples of business mediation

For example, the business mediator will negotiate with the NSSO, which grants out-of-court payment plans lasting up to 24 months for the settlement of all contributions and sums due for the year 2020. The employee will try to obtain a longer period by presenting a solid case together with a cash-flow plan. The objective of mediation may also be to close the company cleanly, without JRP or bankruptcy.

The FPS Finance is also granting support measures until 31 December 2021, such as the exemption of compensation awarded by the regions, communities, provinces or communes following the pandemic. Business mediation is supported by the Brussels-Capital Region and the fees of the business mediator appointed by the Commercial Tribunal are included in the aid granted by the Brussels Regional Government.

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