This article tries to provide a brief overview of the problems which directors of a financially impaired company are facing under Swiss law.

In order to repay debts, many flailing companies allocate additional resources to uncover new sources of income. In turn, these companies incur more debt, and this often leads to a vicious downward spiral ending in bankruptcy.

Despite this bleak outlook, these companies still have the potential to recover and become profitable. One way is through reorganization, which provides relief to debtors that allows them to survive the crisis while ensuring that their creditors receive fair repayment.

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).

Bu bilgi notu, yurtdışı merkezli şirketlerin Türkiye’deki şubelerinin kapanışına ilişkin olarak; tasfiyeye giriş işlemleri ve tasfiye sonunda gerçekleştirilmesi gereken süreçler TTK hükümleri ve İstanbul Ticaret Sicil Müdürlüğü uygulamaları dahilinde bilgilendirme amacıyla hazırlanmıştır.

1. MERKEZİ YURTDIŞINDA BULUNAN ŞİRKETİN TÜRKİYE ŞUBESİ KAPANIŞ – TASFİYE İŞLEMLERİ HAKKINDA

On 15 September 2018, Communiqué on Procedures and Principles on Implementation of Article 376 of the Turkish Commercial Code no. 6102 ("TCC") (“Communiqué”) was published in the Official Gazette and entered into force. The Communiqué provides procedures and principles to be followed in case of capital loss and insolvency situations, and sets out details of remedial actions to be taken pursuant to Article 376 of the TCC.

Recent Development

The Turkish Parliament enacted a law amending the composition (tr. "konkordato," a Turkish scheme of arrangement) articles in the Code of Enforcement and Bankruptcy in response to widespread abuse of the composition proceedings. The changes are effective as of the date of promulgation on the Official Gazette, 19 December 2018, with pending applications remaining subject to the previous version of the provisions.

The Amendments

The major amendments are summarized below.

Yeni Gelişme  

Türkiye Büyük Millet Meclisi, konkordato sürecinin suiistimal edildiğine ilişkin gelen tepkileri göz önünde bulundurarak, İcra ve İflas Kanunu'ndaki konkordato hükümlerinde değişiklikler öngören kanun teklifini yasalaştırmıştır. Değişiklikler 19 Aralık 2018 tarihinde Resmi Gazete’de yayımlanarak yürürlüğe girmiştir. Ancak görülmekte olan konkordato talepleri hakkında önceki hükümler uygulanmaya devam edecektir.

Kabul Edilen Değişiklikler  

Önemli değişiklikler aşağıda özetlenmiştir.

Introduction

The Ministry of Commerce issued a Communiqué on 15 September 2018 ("Communiqué") setting out the principles and procedures pertaining to the application of Article 376 of the Turkish Commercial Code ("TCC"). In brief, Article 376 regulates the measures to be adopted by joint stock companies and limited liability companies (for the purposes of this article, each a "company") in cases of loss of capital or insolvency.

The Financial Restructuring Framework Agreement (“Framework Agreement”) drafted by the Banks Association of Turkey (“BAT”) pursuant to Article 5 of the Regulation on Restructuring of Debts to Financial Sector published in the Official Gazette dated 15 August 2018 and No. 30510 (“Regulation”) has been approved by Banking Regulation and Supervision Agency (“BRSA”) and has entered into force.