Lately, there have been significant amendments in Enforcement
and Bankruptcy Law with the law numbered 7101, which relates to
mainly ways for indebted companies or persons to restructure their
debt relations.
Following March 15, 2018, the effective date of these
amendments, there has been an immense increase in requests for
"composition with creditors" by troubled companies unable
to pay their debts. This became a way out for them after the
abolishment of the scheme of "postponement of bankruptcy"
which had been followed by indebted companies pretty frequently in
the past decades in Turkey.
The list of companies requesting composition with creditors even
includes big companies of various sectors such as food, shoes,
textile, fuel, jewelry, and car rental. Composition with creditors
is now a charming option for financially depressed debtors as it
allows the debtors to sustain their business activity while
spreading their re-payments to their lenders into long terms.
