The concordat institution developed in order to protect the honest merchant debtors who want to continue their business activities by paying their debts and to ensure equality among the creditors.
Concordat contains more than one different process in itself.
Types;
According to the Style of Construction:
Abatement Concordat
Deferral Concordat
Mixed Concordat
According to the Construction Time:
Non-Bankruptcy Ordinary Concordat
Bankruptcy Concordat
According to the Purpose of Construction:
Concordat for the Purpose of Liquidation
Concordat by the Abandonment of Assets
With the Law No. 7101 on the Amendment of the Execution and Bankruptcy Law dated 15 March 2018, the establishment of postponement of bankruptcy has been removed from our Turkish Legal System and most of the provisions regarding concordat have been changed.
It should not be forgotten that the main purpose of the improvement of a capital company or a cooperative is to correct the financial situation of the debtor as planned.
For the concordat process to give a successful and effective result, the process must be carried out correctly and functionally.
It is not necessary to be a merchant subject to bankruptcy to benefit from concordat. It is possible for debtors who are not subject to bankruptcy to benefit from concordat.
We often see that companies that buy and sell or trade goods with foreign currency resort to concordat because of the sudden and unexpected rise in exchange rates.
The concordat request is made at the Commercial Courts of First Instance.
In order to initiate the process, the creditors who may demand the bankruptcy of the debtor or the debtor subject to bankruptcy must apply with a petition that includes the request for a provisionary period request at the Commercial Court of First Instance.
There is a dual distinction in determining the competent court. If the debtor is subject to bankruptcy, the competent court is the debtor's court of action, as in the case of bankruptcy. For commercial enterprises headquartered abroad, the court where the branches of its are located in Turkey is competent. The concordat process for the debtor subject to bankruptcy, which has more than one branch and whose headquarters is located abroad, is carried out in the court where the central branch is located. If the debtor is the person who is not subject to bankruptcy, then the Commercial Court of First Instance at the place of residence of the debtor shall be the competent court.
Usually the Mernis address is used to determine the location.
The "Provisionary Period Request" is the first stage of the concordat request and concordat approval procedures, which are ex parte proceedings.
The request for concordat is a case, but it is an ex parte proceeding.
Therefore, all elements listed in Article 119/1 of the Code of Civil Procedure must be included in the petition.
In the Article 286 of the Execution and Bankruptcy Law, the documents to be added to the petition requesting provisionary period for the concordat request are listed in limited numbers.
If there are deficiencies in the documents, the requester is given time and asked to complete the deficiencies.
This information must be added in provisionary period request: Concordat preliminary project, documents showing the debtor's assets (title deed records, traffic registration records, invoices for machines and machines in the inventory, liquidity in banks, final balance sheet, cash flow statement, income statement, interim balance sheets, opening and closing approvals, e-book certificate documents and other documents showing receivables), comparative table, list showing the creditors and their receivables and the privileges of the creditors, the report to be prepared by independent audit institutions;
The important thing; in the examination of the court, the documents are proving and convincing to the extent that they do not need to be investigated separately.
How are fees and expenses calculated in the concordat application?
In the request for concordat;
Can any creditor demand concordat about the debtor?
Only one of the creditors may demand concordat in terms of debtors subject to bankruptcy.
After the creditor's application to the Commercial Court of First Instance, the court gives the debtor time to submit the documents listed in Article 286 of the Execution and Bankruptcy Law.
The debtor may or may not find the concordat request made by the creditor justified. In this case, by not submitting the documents requested by the court to the court in due time, the debtor may refuse the concordat request placed by the creditor on him.
When the creditor applies to the concordat, who will cover the expenses?
In this case, all expenses shall be covered by the creditor who applied for concordat.