Restructuring and Insolvency Law

Payment difficulties, cash-flow problems or over-indebtedness threaten a company’s ability to continue its business. In such situations, taking early and appropriate action is important both to preserve the company’s value and to protect creditors’ rights.

Under Turkish law, the main options available to distressed companies are the concordat (konkordato) and creditor settlement procedures regulated in the Enforcement and Bankruptcy Law No. 2004, as well as out-of-court restructuring. The concordat process includes temporary and definitive moratorium periods, supervision by a concordat commissioner, the creditors’ meeting and court approval of the plan. The Turkish Commercial Code No. 6102 also imposes specific duties on the board in cases of capital loss and over-indebtedness; failure to comply may give rise to management liability.

For creditors, the filing and admission of claims, enforcement of security, objections to concordat plans and dealings with the bankruptcy administration are key. Restructurings are usually carried out together with accountants and financial advisers.

Our firm advises debtors and creditors in concordat, bankruptcy and out-of-court restructuring processes and represents them before the courts and bankruptcy administrations.