Concordat process management, After the amendment made in the Execution and Bankruptcy Law No. 2004 (EİK) with the Law No. 7101, the “postponement of bankruptcy” practice was terminated and the Concordat practice was implemented instead. In fact, although the Concordat application is a pre-existing institution, it has been made easier and more applicable with the amendments made within the scope of Law No. 7101.
Concordat Process Management
The main reason for the concordat is that the debtor is in danger of not being able to pay his debts when they are due or not being able to pay them on time.
Concordat is the last chance for well-intentioned companies with financial difficulties to improve their financial structures. It is an institution that protects both the debtor and the creditor. It is also a restructuring agreement between the debtor and creditors. The other main function of the concordat is the absolute protection of the rights of the creditors and therefore the assets of the company are kept under the supervision of the commissioner.
The debtor, who is in danger of not being able to pay the debt even though it is due, or is in danger of not being able to pay, may request a concordat with a petition to the Commercial Courts of First Instance, and may request that the debts be reduced from the new maturity or maturity. debts. Again, every creditor who can request bankruptcy can also request a concordat for the debtor with a reasoned petition. Persons about whom a concordat decision can be made; sole proprietors, capital companies, cooperatives, associations, foundations, creditors and real persons. We assist you both in the application process and throughout the entire process.
Who Can Request Concordat?
A debtor who has difficulty paying his debt. With the law numbered 7101, this right is also given to those who do not engage in commercial activities. Any creditor who has the right to request bankruptcy for a debtor subject to bankruptcy may also request a concordat.
The person who will request a concordat may apply to the Commercial Court of First Instance in the place where the activity center is located if the debtor is subject to bankruptcy, or in the settlement if it is not subject to bankruptcy.
Concordat expense fee is paid by the concordat requester. The concordat time request accepted by the court will automatically disappear if the debtor does not pay and process the costs within 5 days after the decision is announced.
We are proud to serve you in the execution of the financial and legal processes of the concordat.
What is the Concordat Process?
The concordat process begins with the acceptance of the debtor’s offer by a certain majority of the creditors and the approval of the project by the court. The court must first decide whether the debtor has the appropriate conditions for concordat. If the documents submitted at the application stage are examined and it is decided that the debtor does not have the appropriate conditions for the transaction, the concordat request is rejected. If the legal conditions are suitable, the process begins. With the approval of the court, the concordat plan becomes binding.
At the first stage, the court grants a temporary grace period of 3 months for the debtor and assigns the concordat commissioner to control the process. If necessary, the period can be extended by 2 months. If there is a report that the plan can be successful during the temporary respite, the court gives a definite deadline this time. The concordat period is normally 1 year, but can be extended by 6 months depending on the course. Except in exceptional circumstances, the debtor cannot be followed up in due time and the previous follow-up decisions are suspended. Also, no interest is charged on the loan.
How Does the Concordat Process Work?
Concordat, which is used in the sense of the agreement between the creditors to receive their receivables according to a certain plan, is the debtor’s agreement with two-thirds of his creditors to pay at least half of his debts and to bind the rest to a payment plan.
How Many Months is the Concordat Term?
How Long Is the Concordat Period? 3 months temporary respite period for the submission of the relevant documents as specified in the law gives. If requested, this 3 months can be extended by 2 more months and the total period is increased to 5 months.
