CONCORDAT LAW

The bankruptcy postponement agency was abolished with Article 4 of the State of Emergency Decree No. 669 published on 31.07.2016. Instead, concordat, which is another option that debtors, whose financial situation has deteriorated, which does not find much application in company rescue operations, can apply.

Concordat is an application regulated in the provisions of Article 285-309 of the Enforcement and Bankruptcy Law ("EBL") and aims to protect the debtors whose financial situation is deteriorated and the creditors of a debtor in this situation. With concordat, the debtor gets rid of all of his debts by paying his debts as accepted in the concordat. As such, concordat is a restructuring agreement between the debtor and the creditors. Concordat is an agreement that binds even the creditors who are not a party to concordat and do not accept it.

Any debtor who wishes to apply for concordat or any creditor who may request bankruptcy shall submit a concordat proposal with a justified petition to the enforcement court. The enforcement court gives the debtor a concordat period of three months at most and determines one or more concordat commissioners if the conditions exist. These appointed commissioners call the creditors to the meeting and the creditors decide on the acceptance or rejection of the concordat at this meeting. If the creditors accept the concordat offer, this concordat is submitted to the approval of the commercial court. The commercial court, which examines the concordat conditions, decides on the approval or rejection of the concordat. If the concordat is approved by the commercial court, the debtor pays his debts by the concordat and gets rid of the part of the debt given up by the concordat.

We provide legal support to our clients, who are looking for a way out of the financial bottleneck/desperate straits, in all necessary areas such as requesting concordat, taking temporary deadlines, conducting relations with creditors and commissioners.