Concordat is a legal institution that enables a debtor whose financial situation has deteriorated to find the opportunity to pay their debts by reaching an agreement with creditors and ensuring the continuation of their business activities. This procedure, regulated in the Enforcement and Bankruptcy Law, provides significant advantages for both debtors and creditors.
The concordat process plays a critical role in helping companies overcome their financial crises. When managed correctly, this process allows companies to restructure and achieve a sustainable financial structure. As Cebeci Law, we provide professional support to our clients at every stage of the concordat process.
It is the process of restructuring debts through an agreement with creditors when the debtor's financial situation deteriorates. In this process, the debtor undertakes to make payments to creditors at a certain rate.
It is the process of postponing the bankruptcy process and reaching an agreement with creditors during this period when the debtor goes bankrupt. This method allows companies to continue their activities.
The concordat process begins with the debtor's application to the court. In this application, the debtor's financial situation, concordat proposal and the reasons for this proposal must be explained in detail. Complete preparation of the application file is critical for the success of the process.
After evaluating the application, the court may issue a temporary respite decision. With this decision, enforcement proceedings against the debtor stop and the debtor has the opportunity to continue their activities. The temporary respite period is maximum 3 months and can be extended when necessary.
The court appoints a concordat commissioner to supervise the concordat process. The commissioner monitors the debtor's activities, examines the financial situation and coordinates relations with creditors.
The concordat proposal is discussed and voted on at the creditors' meeting. If accepted by the majority of creditors, the concordat proposal is submitted to the court.
The court evaluates the concordat proposal legally and approves it if found appropriate. The approved concordat becomes binding for all creditors.
The concordat process is an area that involves complex legal procedures and requires expertise. Getting professional legal consultancy in this process significantly increases the chance of success.
The concordat process is a complex process that requires careful planning and management. To be successful in this process, attention should be paid to the following points:
As Cebeci Law, we provide comprehensive legal consultancy services to our clients in the concordat process. With our experienced team and expert approach, we provide all the necessary support for the successful completion of the concordat process.