To Restructure Or Not To Restructure?

The concept of "financial restructuring" was introduced in Turkey following the country's currency crisis in the summer of 2018. Financial restructuring, defined as revising a debtor's financial structure and redetermining its financial strategy, became the major agenda of Turkish financial institutions. Regulators intervened immediately and began working to form the legal infrastructure for restructuring. The framework agreement that entered into force as a result of the joint efforts of the Banking Regulatory and Supervisory Authority (the "BRSA") and the Banks Association of Turkey (the "BAT") was of particular importance. Nevertheless, we observe that restructurings have been progressing very slowly and in most cases have come to a deadlock. While questioning the reasons for the slow progress, I had the chance to compare the framework agreement with international restructuring methods such as Chapter 11 (US) and Administration and Scheme of Arrangement (UK), and to