NEWSLETTER-2020-metin

95 CAPITAL MARKETS LAW In the event that the terms and conditions of the debt instruments are changed following occurrence of a default in the repayment of debt instruments, all proceedings initiated due to the default of the debt instrument are suspended as of the date when the terms and conditions of the relevant debt instrument are deemed to have been changed, the injunction and precautionary attachment decisions are not applied, the statute of limitations and loss of rights periods that can be interrupted by a legal proceeding do not process. After all debts arising from the debt instrument are fulfilled, the remaining legal proceedings are ter- minated. Other Regulations Upon fulfillment of the conditions specified in Article 5 of the Communiqué ( Determination of the Representative of Debt Instru - ment Holders ), the representative of the debt instrument holders can be elected with the affirmative vote of the debt instrument holders representing more than half of the nominal value of the issuers in cir- culation. The aforementioned Communiqué regulations will not apply to debt instruments issued by the issuer in abroad. Conclusion Legislative arrangements are made for the establishment of BDIH in order to increase reliance in debt instruments, to protect investors in case of default, and to rapidly adapt to changing market conditions. With the Communiqué, the holders of each tenor of debt instrument are given the opportunity to form a separate BDIH. The principles and conditions for the invitation of the BDIH to a meeting and making a decision were obliged to be determined in the prospectus and / or issuance certificate prepared by the issuer for the issuance of the debt instrument. The quorums required for BDIH decisions were deter- mined in the Communiqué. As well, in the Communiqué, in the case of default in the payment of debt instruments with an aim to ensure the applicability of the restructuring, it was also regulated termination of the previously initiated legal proceedings, not processing the statute of limitations and loss of right periods, and the legal proceedings are to be canceled with the execution of the debt instruments.