Concordat Request in Türkiye: Conditions and Documents

The concordat request begins with a short article of the law. Its success, however, usually depends on the quality of the documents listed in the next article.

Article 285: who applies and where?

• Applicant: A debtor who cannot pay debts on time or is at risk of not paying them. The company does not need to be in default yet. The risk is enough.
• Purpose: To be able to pay debts that are due and to avoid a likely bankruptcy.
• Court: The commercial court of first instance at the debtor’s commercial centre.
• Creditors may apply too: Creditors who could request bankruptcy may also request concordat.

Article 286: which documents are attached?

In essence:

1. Concordat preliminary project: At what rate and on what maturities debts will be paid, how much creditors are asked to forgo and how the payment is financed.
2. Documents showing the financial position: Current balance sheet, income statement, cash flow statement and interim statements.
3. Creditor list: Name, amount and privilege status of each creditor.

In practice, courts also look for documents such as a table comparing what creditors would receive in concordat and in bankruptcy, and reports assessing whether the project can be carried out. The current list of documents should be checked against the statute and court practice before filing.

Next step: temporary moratorium

If the court finds the documents complete, it immediately grants a three-month temporary moratorium and appoints a temporary commissioner (Art. 287). The definitive moratorium stage follows. See definitive moratorium and concordat commissioner for details.

How Denova can help

Within our Concordat Advisory, we prepare the preliminary project, financial statements and the application file from a financial and legal perspective together. Before filing, we also assess whether concordat is the right path for you.