ERDEM-NEWSLETTER-2018-metin

Recent Developments on the Enforcement and Bankruptcy Law and Concordat * Att. Fatih Isik Introduction A significant part of the recent legislative amendments to improve the investment environment are made to Enforcement and Bankruptcy Law (“EBL”) numbered 2004. The amendments made within the scope of Law numbered 7101 on the Amendments in Enforcement and Bankruptcy Law and Certain Laws 1 (“Law numbered 7101”) and the Law numbered 7078 on the Ratification of the Statutory Decree on Certain Regulations within the Scope of State of Emergency with Alterations 2 (“Law numbered 7078”) shall be addressed. Regulations Regarding Suspension of Bankruptcy and Concordat A concordat aims to protect both the debtors in poor financial standing, as well as their creditors. In the event that a debtor and a creditor agree on a concordat, the debtor clears his/her debts by paying the debt in line with the agreement stipulated under the concordat. Therefore, a concordat may be defined as a reconstruction agreement between the debtor and his/her creditors 3 . The most significant amendment stipulated by Law numbered 7101 is the abrogation of suspension of bankruptcy and reformation of the provisions regarding the concordat. In the preamble of the amend- ment, creditors’ disability of being influent in the process regarding * Article of March 2018 1 OG, 15.03.2018, No. 30361. 2 OG, 08.03.2018, No. 30354 (bis). 3 Isik, Fatih , Concordat as an Alternative to Suspension of Bankruptcy, Erdem & Erdem Newsletter, September 2016.