Breach of Concordat by the Debtor* Alper Uzun Introduction A concordat is a reconstruction agreement that is regulated under Articles 285-309 of the Execution and Bankruptcy Law (“EBL”), and aims to protect both the debtors in poor financial standing, as well as their creditors. Concordats had been applied in our country for a considerable time in the past; however, their popularity ceased after suspension of bankruptcy provisions came into effect. The concordat took the center stage and became the only restructuring option for debtors in a poor financial situation who did not want to face bankruptcy, following the amendments that prohibited the debtors from requesting suspension of bankruptcy under Decree numbered 669, within the scope of the state of emergency declared in 2016 in our country. The concordat is an important and powerful agreement that is executed under certain conditions before the courts. The concordat is also binding upon creditors who are not parties to the agreement, or who do not accept the agreement. The debtor clears his debts by paying the debt in accordance with the agreement stipulated under the concordat. The debtor should comply with the amount of payment, as well as the schedule. There are three types of concordats, those being “the ordinary concordat”, “the concordat after bankruptcy” and “the concordat through asset abandonment”. * Article of February, 2021
RkJQdWJsaXNoZXIy MjUzNjE=