TERMINATION OF CONCORDAT :
1-) Partial Termination of Concordat (Art. 308/e of the EBL):
Each creditor, against whom no performance is made in accordance with the concordat project, may have the concordat cancelled by applying to the court that approved the concordat, while preserving the new rights acquired pursuant to the concordat. An appeal may be filed within ten days from the date of notification of the judgement to be rendered upon the request for termination, and as a result of the appeal, an appeal may be filed against the decision of the regional court of justice within ten days from the date of notification.
2-) Complete Cancellation of Concordat (Art. 308/f of the EBL):
Each creditor may request the termination of the concordat, which is crippled by bad faith, from the court that has given the confirmation decision. When the decision on the complete termination of the concordat becomes final, the situation shall be announced and notified to the relevant authorities.
If the concordat is not approved, the court shall decide to reject the concordat request and this decision shall be announced and notified to the relevant authorities. In this case, if the debtor is one of the debtors subject to bankruptcy and one of the reasons for direct bankruptcy exists, the court shall decide on the bankruptcy of the debtor ex officio.
LEGAL REMEDIES AGAINST THE CONCORDAT DECISION:
287 of the Enforcement and Bankruptcy Law. Pursuant to Article 287 of the Enforcement and Bankruptcy Law, legal remedies cannot be applied against the decisions regarding the acceptance of the request for temporary respite, appointment of a temporary commissioner, extension of the temporary respite and measures.
293. Pursuant to Article 293 of the same Law, no legal remedy may be filed against the decisions regarding the acceptance of the request for definitive respite and the rejection of the request for lifting the respite.
If, as a result of the evaluation of the final respite request, it is decided to reject the concordat request of the debtor who has not been declared bankruptcy, the debtor or the creditor requesting concordat, if any, may appeal within ten days from the notification of this decision. The decision of the regional court of appeal is final. In cases where the decision of the court of first instance is cancelled by the regional court of first instance and a respite is granted, the file shall be sent to the court of first instance for the execution of the subsequent proceedings, including the appointment of the commissar.
In cases where the court or the regional court of first instance decides on the bankruptcy of the debtor together with the rejection of the concordat request, the provision on recourse to legal remedies regarding the bankruptcy decision may be applied.
In addition, pursuant to Article 308/a of the same Law, the debtor or the creditor requesting concordat may appeal against the decision on concordat within ten days following the notification of the decision, and the other creditors who object may appeal within ten days following the announcement of the approval decision. An appeal may be filed against the decision of the regional court of appeal within ten days. Appeal and appeal examinations shall be conducted in accordance with the provisions of the Code of Civil Procedure.
Fee and tax exemptions within the scope of concordat (Art. 308/g of the EBL):
With the approved concordat proceedings, the transactions to be carried out shall be exempt from the fees subject to the Law on Fees, the papers to be issued shall be exempt from the stamp tax, the amounts to be collected by the creditors shall be exempt from the bank and insurance transaction tax in accordance with the Expense Taxes Law, and the loans to be made available to the debtor shall be exempt from the Resource Utilisation Support Fund.
These provisions shall only apply to the debtor and the creditors in the project in terms of the transactions specified in the concordat project. The periods of the incentive certificates and export commitment periods belonging to the debtors whose debts are bound to a new payment plan according to the concordat project shall not run from the date of the temporary respite decision until the date the concordat becomes binding.
Fees levied at the time of payment to creditors have been reduced. Fees will be charged at the rate of (2.27 per thousand) on the money agreed to be paid to the creditors in the concordat and (1.13 per thousand) on the money agreed to be paid to the pledged creditors at the end of the restructuring.
DUTIES OF THE COMMISSIONER
a) To contribute to the completion of the concordat project.
b) Supervising or personally managing the activities of the debtor.
c) To submit interim reports to the court.
d) To keep the creditors’ committee regularly informed.
e) To inform the creditors who request it about the debtor’s situation and the concordat.
RIGHTS OF THE CREDITORS’ COMMITTEE:
a) To supervise the activities of the Commissioner.
b) To make recommendations to the commissioner.
c) To request the court to replace the commissioner whose activities are not sufficient.
d) To give opinion to the court in cases stipulated by the law.
EFFECTS OF CONCORDATOON ON Pledged Creditors (Art. 308/h of the EBL)
A new section titled “Negotiation with Pledged Creditors and Restructuring of Debts” has been added to the EBL, and the conditions for negotiation with pledged creditors have been re-provided as follows.
In ordinary concordat, the debtor shall request the restructuring of the debts pledged in favour of the creditor by specifying in the preliminary project. The commissioner shall invite all pledged creditors to negotiate the debtor’s principal reduction, interest reduction, maturity or other payment proposals at the time he deems appropriate within the final respite.
If an agreement is reached with the majority of the pledged creditors exceeding two-thirds in terms of the amount of receivables during the negotiation and within the seven-day participation period following the negotiation, the commissar shall record the signed agreements in the minutes and shall state the agreement with the pledged creditors under a separate and independent heading in his reasoned report to the court.
If the debtor’s proposals are accepted by a majority exceeding two-thirds in terms of the amount of receivables, the pledged creditor who cannot reach an agreement with the debtor shall be subject to the longest term of the agreements made with other pledged creditors by applying the pre-default interest rate agreed in the agreement between the parties as of the date of the concordat request. This matter and the plan regarding the payments to be made by the debtor to the pledged creditors with whom an agreement cannot be reached shall be recorded in the minutes by the commissioner and shall also be included in the reasoned report of the commissioner to be submitted to the court.
If no agreement has been reached with the pledged creditors, this matter shall also be included in the reasoned report of the commissary. The court shall include the agreements made with the pledged creditors, whether the two-thirds ratio has been reached or not, and if there are pledged creditors with whom an agreement cannot be reached, the agreements and the payment plan after checking whether the payment plan to be applied to them complies with the conditions or not, in its decision on the approval of the concordat.
However, if the debtor’s concordat project is not accepted at the creditors’ meeting, the agreements concluded with the debtor by the pledged creditors who have made an agreement pursuant to this article and the payment plan prepared for the pledged creditors who have not made an agreement shall not become valid.
Any pledged creditor against whom performance has not been made in accordance with the agreement concluded may apply to the court that issued the confirmation decision and have the agreement regarding that pledged receivable terminated. However, if the ratio of two-thirds falls below two-thirds as a result of this termination, the pledged creditors who have not accepted the debtor’s offer and are subject to the payment plan are no longer bound by this plan, and the pledged creditors who have agreed with the debtor may terminate the agreement.
Articles 285 to 309/1 shall not apply to the pledged receivables, unless the debtor separately and explicitly requests it in the ordinary concordat request.
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