ERDEM-NEWSLETTER-2018-metin

62 NEWSLETTER 2018 the TCC. Such method has been frequently conducted in practice and is included in Article 7/1(c) of the Communiqué. Additionally, the companies within the scope of this paragraph have been granted with the option to directly increase their capital without engaging in a capital decrease. However, as distinct from the procedure of simultaneous capital increase and decrease, such op- portunity is conditioned to payment of one-half of the capital amount prior to registration. Insolvency In the event that the current and fixed assets of a company are insufficient to cover the debts of the same, provisions on insolvency are applied. The provision stipulated under Article 376/3 of the TCC stipulating issuance of an interim balance sheets on the basis of both continuance of the business and potential sale prices, is also included in the Communiqué. In the event that company assets are insufficient to cover its li- abilities, the TCC requires fulfillment of the following conditions prior to a bankruptcy decision: • Debtors of the company having receivables from the com- pany that are sufficient to eliminate insolvency of the com- pany waives, in writing, the priority of their receivables; and • Verification of the relevance, reality and validity of such wa- iver by the experts appointed by the court to which the board of directors submitted the bankruptcy. The options granted to the companies whose two-thirds of the capital and legal reserves are uncovered under Article 7 of the Com- muniqué, are also granted for insolvent companies, and they are re- quired to apply to the court for bankruptcy, unless such options are not exercised.