ERDEM-NEWSLETTER-2018-metin

286 NEWSLETTER 2018 suspension of bankruptcy, a debtor’s and the court’s active role in the process of suspension of bankruptcy and problems occurring during adjudication in this respect are specified as the reasons behind the abrogation of the suspension of bankruptcy 4 . Accordingly, the refor- mation of the provisions which take into consideration the problems stated, above, intend to render the concordat, which consists of an agreement between the creditor and the debtor and court’s approval regarding this agreement, a more efficient and functional institution. In this respect, the procedures and principles regarding preparation and acceptance of the concordat project are covered by this law. Within this framework, the objective is the continuance in the debtor’s commercial activities, as well as the contractual relations during the term of the concordat. It is clearly regulated that even if the parties agree that the contract will be terminated, or that the debt will mature in case of a concordat, this contractual provision shall not apply. The most remarkable amendment is the change of the competent court on concordat transactions. Whereas the enforcement courts were formerly the competent courts to hear the request of concordat prior to Law numbered 7101 coming into force, the commercial courts of first instance are now determined as the competent courts pursuant to Law numbered 7101. Law numbered 7101 defines the term “temporary term of con- cordat,” and it is stipulated that the temporary term of a concordat, which bears the same legal consequences with the definitive term of a concordat is, in principle, three months, and may be extended for two more months. Furthermore, in the event that the concordat may be accomplished, in particular situations, the one year definitive term granted to the debtor may be extended up to six months. In this manner, the concordat term is limited to a maximum of 23 months, including the extended temporary term and the definitive term. It shall be noted that the regulation stipulates that should the financial condi- tion of the debtor of the concordat turn to the positive, the term of the concordat may be abolished under Law numbered 7101. 4 Preamble of the Law No. 7101, p. 4.