ERDEM-NEWSLETTER-2018-metin

293 ENFORCEMENT AND BANKRUPTCY LAW ing companies that may prepare the reports are narrowed down, and it is stipulated that the independent auditing companies that are “authorized for auditing of the companies concerning the public interest” shall pre- pare the reports. As well, the nature of the reports are amended, and it is ordered that the auditing report of the offer in the preliminary project of the concordat, which gives reasonable assurance instead of the “finan- cial analysis report,” shall be prepared. In addition, the standard of the audit is amended, and it is indicated that it shall be prepared within the scope of the audit made as per the Turkish Auditing Standards. It states that the protection of the balance between a debtor’s and a creditor’s interest is intended through this regulation. Paragraph 2 of Article 286 is revoked, and some additions have been made to the Article. The addition of the provisions of Decree No. 660 to the Organization and Responsibilities of the Public Over- sight, Accounting and Auditing Standards Authority, shall be applied regarding the rights and obligations of the auditing companies, the examination and audit of the report, and administrative and legal re- sponsibilities that may arise from these reports and other issues. Pursuant to Article 287 of the Execution and Bankruptcy Law, the chosen concordat commissar controls whether or not it is possible for the concordat to succeed. It is foreseen, through the amendment to the Article, that if three commissars are appointed, one of the commissars shall be elected from amongst “the independent auditors authorized by the Public Oversight, Accounting and Auditing Standards Authority” who are working in the city wherein the court is located. By the amendment to Article 290, which determines the qualifi- cations of the concordat commissar, it becomes mandatory to be edu- cated, and registered in the commissar list constituted by the regional expertise boards, in order to be appointed as a commissar. The state of “Understanding that the debtor acted in order to harm the creditors,” is regulated as a reason to reject the concordat request, and to commence bankruptcy proceedings through the amendment made to Article 292, which regulates the rejection of the concordat request and the opening of the bankruptcy. These provisions entered into force on the date of the publication of the Law.