Concordat in Eskişehir, Türkiye: Court, Process and Preparation

For a manufacturer, a transport business or a construction firm in Eskişehir, a cash squeeze rarely arrives overnight. Payment terms stretch first, then cheques are hard to cover, and finally banks and suppliers change their attitude.

At that point concordat (konkordato) comes up. But how does the process work in practice for a company seated in Eskişehir?

This article answers the questions we hear most often from local businesses. For the general framework, see our guide What Is Concordat in Türkiye?.

Who Is Concordat For?

A debtor who cannot pay debts that are due, or is at risk of not paying them on time, may request concordat (Turkish Enforcement and Bankruptcy Law, Art. 285 ff.).

In Eskişehir we most often see it in:

• Manufacturing and industrial companies with orders in hand but a short-term debt load that has become unmanageable
• Trading and wholesale companies that cannot collect receivables on time
• Construction and contracting firms whose progress payments are delayed
• Family companies whose loan and cheque burden has become unmanageable

Concordat is not only for businesses that have already failed. Acting while payment difficulty is approaching often keeps more options open.

Which Court Do You Apply To?

The request is filed with the commercial court of first instance (asliye ticaret mahkemesi) competent for the debtor’s domicile. For a company, this is the place of the seat recorded in the trade registry.

For a company seated in Eskişehir, these are the commercial courts in Eskişehir. If the seat and the actual operations are in different provinces, or if a corporate group is involved, competence should be checked before filing. Filing with the wrong court costs time.

How the Process Works

The statutory framework is the same across Türkiye:

1. Preparation: financial statements, creditor list and the concordat preliminary project are prepared.
2. Application: the petition and its annexes are submitted to the court.
3. Temporary moratorium: if the documents are sufficient, the court grants a three-month temporary moratorium and appoints a temporary commissioner.
4. Definitive moratorium: if the project looks viable, a one-year definitive moratorium follows. Both periods can be extended.
5. Vote and confirmation: creditors vote on the project. With the required majority, the court confirms it.

What to Check Before Filing

The court decides on the moratorium largely by looking at the submitted documents and how realistic the project is. Before filing, you need clear answers to these questions:

• Can the business generate enough cash to pay its debts while it keeps operating?
• How much is owed to banks, suppliers and public authorities?
• How large are the secured claims?
• Is an out-of-court agreement with creditors realistic?

The last question matters. With few creditors and relationships that can be preserved, an out-of-court Financial Restructuring can be faster and less disruptive. We compare the two paths in Concordat or restructuring?.

Does the Work Have to Be Done Locally?

Court competence follows the registered seat, but the preparation work does not. Financial analysis, project drafting and creditor talks can be handled in person or online.

The practical advantage of a local team is speed in gathering documents and in coordinating with the court, the commissioner and creditor meetings.

Conclusion

For a company in Eskişehir, concordat can be a way to keep operating while reorganising debts, provided it is filed at the right time and with proper preparation. Every case is different, so your own situation needs to be assessed rather than relying on general information.

With Concordat Advisory, we first check whether this path suits your business. If you would like to talk it through, write to us. You can find the scope of the service on our Concordat Advisory page.