NEWSLETTER-2020-metin

91 CAPITAL MARKETS LAW The Communiqué on Board of Debt Instrument Holders* Att. Nezihe Boran Introduction Law No. 7222 regarding Amendments to the Banking Law, as well as Certain Other Laws (“Law No. 7222”) entered into force through its publication in the Official Gazette dated 25.02.2020. Law No. 7222 introduced, among others , Article 31/A ( Board of Debt In - strument Holders ) to Capital Markets Law No. 6362 1 (“Capital Mar- kets Law”). The Capital Markets Board (“Board”) was authorized to determine the procedures and principles regarding the implementation of the Article added to the Capital Markets Law. As such, the Commu- niqué on Board of Debt Instrument Holders (II-31/A.1) (“Communi- qué”) prepared by the Board entered into force through its publication in the Official Gazette dated 11.09.2020. This article will mainly focus on the Board of Debt Instrument Holders (“BDIH”) as well as the meetings of BDIH, decision quorums, breach of payment obligations by the issuer and structuring of debt instruments as regulated under the Communiqué. Debt Instrument and the Board of Debt Instrument Holders Debt instruments used as an alternative form of financing are de- fined under the Communiqué on Debt Instruments (VII-128.8) as the bonds issued by debtors, bonds convertible to shares, exchangeable bonds, financing bills, precious metal bonds and capital market instru- ments, and are accepted as debt instruments by the Board. It was necessary to establish BDIH in order to increase reliance on debt instruments, to protect investors in case of default, and to rap- * Article of September, 2020 1 Capital Market Law No. 6362, OG No. 2851330, 12.2012.