Debt Restructuring In Turkey: Use Of "Framework Agreements"

By Levent Yetkil and Arda Cosar, Aksu Çaliskan Beygo Attorney Partnership ("ASC Law")¹

In the following article ASC Law addresses the use of standardized "Framework Agreements" – prepared by the highly-regarded Banking Association of Turkey² – in debt restructuring negotiations³. The use of this relatively new restructuring tool has been instrumental, it is fair to say, in providing at least temporary financial relief to hundreds of Turkish companies operating under the weight of crushing debt loads, the result, for the most part, of Turkey's recent economic woes⁴. Because of this, many viable and productive companies, which otherwise faced liquidation, have been able to continue their operations and thrive.