Pursuant to Article 309 of the EBL, if a debtor whose bankruptcy has been adjudicated requests concordat or if one of the creditors of this debtor requests the initiation of concordat proceedings, the bankruptcy administration, together with its opinion, notifies the creditors of this request to be discussed at the second meeting of creditors or later.
All proceedings until the approval of the concordat and the provisions of the concordat shall also apply here. In concordat after bankruptcy, the duties of the commissioner shall be performed by the bankruptcy administration. During the period from the date of the meeting where the concordat request is accepted by the creditors until the date of the approval of the concordat by the court, the procedures for the conversion of the assets of the bankrupt to money shall be suspended and this period may not exceed six months. The decision on concordat shall be notified to the bankruptcy administration.
Upon the finalisation of the decision on the approval of the concordat, the bankruptcy administration shall request the court that ruled on the bankruptcy to lift the bankruptcy. After bankruptcy, concordat may be requested only once within the bankruptcy liquidation.
Conclusion
First of all, before a decision is made about the future of the debtor with concordat, there are a number of coercive measures such as stopping the enforcement proceedings by giving an immediate period of time by the court in order to prevent the debtor from being in a difficult situation with foreclosures and to create a proper and applicable decision environment, and to oblige the execution of contracts if necessary.
Here, the court will create a balance between the continuation of the debtor’s economic existence and the protection of the rights of the creditors. In particular, it will be ensured that the first 3-month temporary period is not abused by the debtor.
The new concordat institution is an institution that enables both those who cannot pay their debts on time and those who are likely to be unable to pay their debts on time, as well as for the creditors, to restructure the debt in a healthy environment so that the debt can be paid and the debtor to get rid of his debt without bankruptcy, and the creditors to obtain a much higher amount of receivables than the bankruptcy of the debtor.
In concordat, there is no situation of being insolvent, as in the case of postponement of bankruptcy in the past. In this respect, it will be the healthiest way for companies and individuals who are likely to be unable to pay their debts in due time to apply to their lawyers to request concordat before they become unable to pay the debt.
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