Recent development

With a presidential decision numbered 4299 and dated 14 July 2021, the effectiveness of Temporary Article 32 of the Banking Law regulating the financial restructuring transactions and related incentives and tax exemptions contemplated under the Framework Agreement has been extended for an additional two years. Please refer to the following links for our alerts on the introduction of Temporary Article 32 and the Framework Agreement:

What’s new?

Yeni Gelişme

Recent development

Yeni Gelişme

Koronavirüs (COVID-19) salgın hastalığının Türkiye'de yayılmasını önlemek amacıyla hükümet tarafından alınan tedbirler kapsamında Cumhurbaşkanı tarafından İcra ve İflas Kanunu'nun ("İİK") "Fevkalade Hallerde Tatil" başlıklı 330. maddesinde kendisine verilen yetkiye dayanarak verilen "İcra ve İflas Takiplerinin Durdurulması Hakkında Karar", 22.3.2020 tarihinde yürürlüğe konmuştur.

Karar Ne Diyor?

1. Nature of process 

Chapter 11 used to effect operational restructuring, deleverage balance sheet, and/or commence asset sale of the business as a going concern

Insolvency Act process primarily used to effect a pre-packaged sale of the business or assets effected by administrators (i.e. external qualified appointees).

I. DEFINITIONS

"Banking Law" means the Banking Law of Turkey No. 5411.

"BRSA" means the Banking Regulatory and Supervisory Authority of Turkey.

"Creditors" means Turkish banks, financial leasing companies, factoring companies and financing companies and Foreign Credit Institutions and International Organizations.

Recent Development

The Financial Restructuring Framework Agreement ("PreviousFA") drafted by the Banks Association of Turkey was revised to be divided into two separate framework agreements for large scale (the "Large Scale FA") and small-scale (the "Small Scale FA") debtors.

What's New?