What is concordat?

Legal Notice

This article is an English translation of Turkish jurisprudence provided for international clients and informational reference. Under Turkish procedural and substantive law, official judicial proceedings, statutory interpretations, and court verdicts are governed exclusively by the authentic Turkish legal text.

The bankruptcy postponement institution, which is regulated in the Execution and Bankruptcy Law and has been in practice for a long time, was abolished in 2018 by Law No. 7101 dated 28.02.2018. As a result, another institution was needed that would enable debtors to improve their financial situations and continue their commercial lives. In order to meet this need, the legislator, together with the Law No. 7101, has made the provisions of the EBL Articles 285 et seq. articles have been amended. With the new regulations, the concordat institution, which is included in the law but has not been implemented, has become functional. This situation is stated in the justification of the draft law;

"The institution of postponement of bankruptcy, which has been implemented in our country since 2003, has not been able to achieve what was desired in terms of realizing its purpose. For this reason, the institution of postponement of bankruptcy has been revised with the Law No. 6728 adopted on July 15, 2016. Considering the fact that creditors do not have any say in the institution of bankruptcy postponement, the process is carried out between the debtor and the court, and the judicial problems experienced, this institution should be completely abolished and instead the creditors and the debtor reach an agreement as a result of negotiation and "More effective and active use of the concordat institution, which is based on the approval of this agreement by the court, has been seen as a need for commercial and social life." It took place in the form.

As a result of the changes, the way for merchants (persons subject to bankruptcy) as well as people who are not subject to bankruptcy to exist in commercial life has been paved. One of the main differences between bankruptcy postponement and concordat arises from this point.

According to Article 285 of the EBL; Any debtor who cannot pay his debts when they are due or who is in danger of not being able to pay them on maturity may request concordat in order to be able to pay his debts by granting maturity or reduction or to avoid possible bankruptcy. Based on the article of law, concordat; It can be defined as a legal institution introduced to protect both the debtor and the creditor, which provides an opportunity for debtors who intend to pay their due or future debts but are in danger of not being able to pay, to reach an agreement with a certain majority of their creditors, and which is effective as a result of the approval of the commercial court. As we will explain in detail later, although it contains an agreement based on the institution of concordat, it is considered a mandatory agreement since it only becomes effective upon court approval.

The institution of concordat aims to prevent the possible damages of bankruptcy and to increase the possibility of getting their receivables as a result of some sacrifices. In this respect, it is evaluated in favor of both the debtor and the creditor. In addition, between concordat and postponement of bankruptcy; There is also a difference in terms of creditors' right to speak. Namely, approval of the concordat request is only possible with the consent of the creditors. However, in the bankruptcy postponement institution, creditors' consent was not given importance. This difference shows that concordatum protects creditors more than postponement of bankruptcy. Izmir BAM used the following statements in one of its decisions:

"Concordat is an enforcement law institution in which creditors also participate in the process and consent to the payment of debts by evaluating and voting on the debtor's project regarding both recovery or liquidation and payment of debts, and which binds creditors who do not consent after the approval of the court. The general purpose of the institution is to ensure that creditors do not suffer further losses. Essentially, concordat itself is a payment system in which creditors cannot receive their receivables on time and in full. "In this form, concordat is a legal institution that already includes the possibility of damage to creditors. The issue that needs to be balanced here is the relatively long liquidation of the bankruptcy and the difference between the amount to be distributed and the amount to be paid in case of approval of the concordat. The recovery of the debtor business and the provision of employment are also factors that should be taken into consideration." 17.HD. 2019/1181 K.

Again, in order for the concordat request to be accepted, the debtor's state of insolvency is not required. For this reason, debtors of receivables that are not yet due may also request concordat.

WHAT ARE THE TYPES OF CONCORDAT?

There is more than one type of concordat stipulated in the Execution and Bankruptcy Law. In the classifications made under this heading, all types of concordat will be included. However, since the type of concordat that constitutes our subject of examination is ordinary concordat, our explanations will be made within this framework. While classifying the concordat, the following distinctions are used: pre-bankruptcy and post-bankruptcy concordat, concordat by abandonment of assets, concordat of reduction, maturity concordat and mixed concordat.

1- What is Concordat after Bankruptcy?

Provisions regarding concordat after bankruptcy are included in Article 309 of the Bankruptcy Bankruptcy Code. Accordingly; If a debtor whose bankruptcy has been adjudged requests concordatum, or if one of the creditors of this debtor requests concordatum proceedings to be initiated, the bankruptcy administration notifies this request to the creditors, along with its opinion, to be discussed at the second creditors' meeting or at a later time.

Articles 302 to 307 and Articles 308/a to 308/g are also applicable here. The duties of the commissioner are performed by the bankruptcy administration.

The conversion of the bankrupt's assets into cash stops in the period between the date of the meeting where the concordat request is accepted by the creditors and the date when the concordat is approved by the court. This period cannot exceed six months.

The decision regarding the concordat is notified to the bankruptcy administration.

Upon the finalization of the approval decision of the concordat, the bankruptcy administration requests the court that ruled the bankruptcy to abolish the bankruptcy.

After bankruptcy, concordat can only be requested once during the bankruptcy liquidation.

2- What is Concordat by Abandonment of Assets?

This type of concordat was added to Article 309/a of the EBL on 17.7.2003 and it was also stated in the law that a regulation regarding its implementation would be issued. Therefore, in terms of the application of concordatum through abandonment of assets, article 309/a 309/1 of the law and the regulations should be examined. According to Article 309/a of the EBL; With concordatum through abandonment of assets, creditors are authorized to dispose of the debtor's assets or to transfer all or part of these assets to a third party.

As can be clearly understood from the article of the law, in this case of concordat, the authority to dispose of the debtor's assets is transferred to the creditors. The law also states how creditors can benefit from the debtor's assets. Accordingly; Creditors exercise their rights through concordat liquidators and the board of creditors. The concordat liquidators and the creditors' board are elected by the creditors who decide on the concordat request. The concordat liquidator begins his duty after the "commercial court of first instance" approves the decision regarding the election.

In this type of concordat, the debtor's aim is to get creditors' receivables from his assets and to avoid bankruptcy.

In Article 309/b of the EBL, the mandatory content of concordatum is included, such as the abandonment of assets. Accordingly; Concordatum by abandonment of assets includes the following issues:

Whether the creditors have waived their receivables that cannot be met by liquidation of the assets or transfer to a third party, and if not, what is the debtor's responsibility.
Determining the composition liquidators and members of the board of creditors and their powers.
If not determined by law, the liquidation procedure of the goods and, if the goods are to be transferred to a third party, the form and guarantee of this transfer.
Announcements to creditors and notifications to relevant authorities will be made in accordance with Article 288. If there are goods outside the scope of concordat, these are clearly stated.

3- What is Ordinary Concordat?

Ordinary concordat is a type of pre-bankruptcy concordat, and there are three types of this type in the law: reduction, maturity and mixed concordat. The distinctions regarding these types of concordat are explained in the justification of the government draft as follows:

"As it is known, concordat is divided into two as maturity concordat and reduction concordat. Although this distinction is not included in the Execution and Bankruptcy Law, it is a distinction generally accepted in doctrine.

In the reduction concordatcreditors give up collecting a certain percentage of their receivables against the debtor, and the debtor is relieved of all his debts by paying the part (percentage) of his debts accepted in the concordat.

In maturity concordat, the debtor requests a maturity from his creditors to pay his entire debt or pays his debts in installments.

In our country's practice, the debtor often requests both maturity and reduction from its creditors and thus offers a mixed concordat. It is possible for a debtor who is incapable of paying debts, although not insolvent, to request a maturity concordat. In other words, if it is not possible for a debtor who is able to pay all his current debts to pay all his debts due by selling his assets at that moment, then the debtor can ask his creditors to give him a grace period by committing to pay his debts one hundred percent, that is, in full (maturity concordat). It should not be possible for a debtor in this situation to normally request a reduction concordat, because such an offer does not comply with the condition that "the amount offered to be paid is proportional to the debtor's resources". However, during the preparatory work, it was argued that it was necessary to keep the way open for the courts to make evaluations according to the characteristics of the concrete case, so it was avoided to impose a limitation in the text of the article in this direction.

WHO CAN APPLY FOR CONCORDAT?

As we mentioned above, the concordat institution, unlike bankruptcy postponement, is a legal institution that debtors who are or are not subject to bankruptcy can apply.

In order to apply for concordat, it is necessary to be unable to pay the debts that are due or to be in danger of not being able to pay the debts that are not yet due.

In addition to the debtor, creditors also have the right to request concordat. However, here the creditors' right to apply is limited depending on whether the debtor is subject to bankruptcy or not. Namely; In order for creditors to apply for concordat, the debtor must be a person subject to bankruptcy.

In order for commercial companies to apply for concordat, partners must take a unanimous decision.

WHICH COURT CAN APPLICATION FOR CONCORDATUM BE MADE?

The competent and responsible court for the concordat application is Article 285/3 of the EBL. It is shown in the article. Accordingly; For debtors subject to bankruptcy, the courts in the location where the debtor's center of action is located are deemed to have jurisdiction. In accordance with EBL 154/2; The competent authority for commercial enterprises whose headquarters are located abroad will be the courts in the place where the branch in Türkiye is located, or if there is more than one branch, the central branch is located.

For debtors who are not subject to bankruptcy, the courts in the debtor's place of residence will have jurisdiction.

Concordat application is made to the Commercial Court of First Instance.

FEES AND ADVANCE RECEIVED FROM THE PERSON WHO APPLICATES FOR CONCORDATE

EBL, 285/5. As stated in the article, the person who requests concordat is obliged to pay the concordat expense advance specified in the tariff put into effect by the Ministry of Justice. In this case, articles 114 and 115 of the Code of Civil Procedure No. 6100 dated 12/1/2011 are applied by analogy. The relevant articles of the regulation specified in the law are as follows:

Concordat expense advance ARTICLE 3

(1) The requester must deposit the expense advance shown in this Tariff to the court cashier when requesting concordat. The concordat expense advance covers expenses such as all kinds of notification and postal fees, expert and concordat commissioner fees, announcement fee, bankruptcy expense and round-trip fees for the file to the regional court of justice and the Supreme Court.

Concordat expense advance amount ARTICLE 4

(1) Requestor;

a) Notification expense amounting to three times the number of creditors notified when requesting concordat,

b) 550.00 Turkish Liras, which is the minimum amount of seven advertisements to be published in the Turkish Trade Registry Gazette,

c) The minimum amount of the cost of seven advertisements to be made on the official advertisement portal of the Press-Advertising Agency, as determined in the Official Advertisement Price Tariff,

ç) 50 registered postage fees for the notification to be made to the relevant institutions and organizations,

d) The amount of three times the fee determined in the Expert Fee Tariff for an expert,

e) Five-month wage amount calculated on a minimum of 1,000.00 Turkish Liras for the person who will be appointed as the concordat commissioner to later complete the fee to be determined by the court,

f) 300.00 Turkish Liras for other works and transactions,

g) For those subject to bankruptcy, it pays the sum of 15,000.00 Turkish Liras of bankruptcy expense as an advance.

(2) The court may decide to make a reduction from the advance expense amount listed above for debtors who are not subject to bankruptcy.

In addition, an application fee is collected from the person requesting concordat.

WHAT ARE THE DOCUMENTS REQUIRED FOR CONCORDATE REQUEST?

The necessary documents are determined in Article 286 of the EBL, titled "Documents to be added to the concordat request", and then "the procedures and principles regarding the implementation of the article are determined by the regulation put into effect by the Ministry of Justice." The verdict has been made. According to the relevant regulation, the debtor who requests concordatum attaches the following documents to his concordatum request:

a) Concordat preliminary project.

b) Documents showing the status of the debtor's assets.

c) Creditor and receivable list.

Debtor; It adds the list showing creditors, receivable amounts and privilege status of creditors to the concordat request.

ç) Comparison table.

The debtor attaches to the concordat request a table showing the comparison of the amount expected to be received by creditors according to the proposal in the concordat preliminary project and the possible amount that will be received by creditors in case of bankruptcy.

d) Audit report providing reasonable assurance.

The audit report providing reasonable assurance is the document prepared in accordance with the regulations of the Institution and assumed responsibility by the independent audit firm that signed it, in order to submit to the court the auditor's opinion formed in accordance with the reasonable assurance level as a result of the evaluation of the audit evidence within the framework of Turkish Auditing Standards, and other matters to be drawn to, if any. If, as a result of its audit, the independent audit firm reaches a positive conclusion that the offer in the concordat preliminary project will be realized, it prepares an audit report that provides reasonable assurance.

(2) If the debtor is one of the persons not subject to bankruptcy, he/she shall attach only the documents written in paragraphs (a) and (c) of the first paragraph and, to the extent appropriate, the documents written in paragraph (b) to the concordat request.

(3) If the initiation of composition proceedings is requested by one of the creditors, the court gives the debtor a reasonable period of time to submit the documents and records specified in the first or second paragraph in full. In this case, the expenses required for the preparation of the mentioned documents and records are covered by the creditor.

"The debtor requesting concordat must add the concordat preliminary project to his petition. The basis of the concordat request is the concordat preliminary project. The debtor can change his preliminary project within the temporary and definitive period and thus present a concordat project different from the initial preliminary project to the meeting of creditors. "Documents to be added to the concordat request" are regulated in Article 286 of the EBL. The ordinary (non-merchant) requesting concordat In accordance with Article 286 of the EBL, the debtor must submit documents showing the status of his assets to the court, together with the concordat request petition and the preliminary project.

According to accounting science, it is the difference between the debtor's assets, money in the safe and bank, receivables, real estate, vehicles, machinery, etc., and various debts such as bank debts and tax debts. The debtor must certify his/her assets; making an abstract declaration is not sufficient. The debtor must also report his surety debts and pledges. It must also provide a list of creditors and indicate the identity of these creditors and the amount and maturity of their receivables.
Within the scope of the mandatory regulation of the law, the court must, ex officio, check whether the documents stipulated by the law have been submitted or not, and if there are missing documents, a decision must be made based on the result by giving a definite time to complete this deficiency. In eliminating the deficiency, Article 114/2 of the Code of Civil Procedure No. 6100. paragraph and article 115 can be applied by analogy.

In the concrete case, the plaintiff company and the real person who owns all shares of the plaintiff company filed a lawsuit together. There is no mandatory companionship between the parties. It is not possible to talk about a regulation that considers it mandatory or necessary for the company and its partner or partners to file a lawsuit together, in the EIB's regulations regarding concordat or within the scope of any other legal regulation. Since each applicant's concordatum request will need to be evaluated separately, each applicant, regardless of whether he or she is a company partner, will be required to submit the documents to be attached to the concordatum request, as required by law.

It is understood from the regulation that these documents are not limited and that the debtor must also submit other documents and records that may be requested by the court or commissioner during the concordat process. The documents will need to be prepared and submitted separately." Istanbul BAM 17. HD 2020/355 K.

WHAT IS INCLUDED IN THE PRELIMINARY PROJECT OF CONCORD?

According to Article 6 of the Regulation on Documents to be Added to the Concordat Request, the following issues are included in the preliminary concordat project:

a) At what rate or term the debtor will pay its debts.

b) To what extent creditors will have given up their receivables.

c) Whether the debtor will sell his goods to make the payments.

ç) By what method will the debtor provide the necessary financial resources to continue its activities and make payments to creditors; In this context, whether it will increase capital or obtain loans or use another method.

WHAT ARE THE DOCUMENTS SHOWING THE DEBTOR'S ASSET?

The debtor attaches documents showing the status of his assets to his concordat request. If the debtor is one of those who are obliged to keep bookshe also attaches the following documents:

a) Latest balance sheet prepared in accordance with the Turkish Commercial Code No. 6102 dated 13/1/2011.

b) Income statement.

c) Cash flow statement.

ç) Interim balance sheet prepared on the basis of going concern.
d) Interim balance sheet prepared based on possible sales prices of assets.

e) Opening and closing certifications of commercial books and e-ledger certificate information regarding books created electronically.

f) Lists of tangible and intangible assets containing their book values.

g) List and documents showing all receivables and debts with their due dates.

ğ) Other information and documents explaining the financial situation of the debtor.

(2) For debtors who are subject to independent audit in accordance with the Decision of the Council of Ministers No. 2018/11597, those listed in paragraphs (a), (b) and (c) of the first paragraph must have undergone independent audit.

(3) In terms of the date of the financial statements listed in paragraphs (a), (b) and (c) of the first paragraph, one calendar year must not have passed since the closing of the relevant accounting period. The date of the tables, information and documents listed in other paragraphs may be at most ninety days before the date of application to the court.

(4) The tables listed in paragraphs (a), (b), (c), (d) and (d) of the first paragraph are prepared in accordance with the financial reporting framework.

TEMPORARY EXPIRATION IN THE CONCORDATE - RESULTS OF THE TEMPORARY EXPIRATION DECISION

The temporary respite is likened to the precautionary measure in the bankruptcy postponement institution. As we mentioned above, this institution was added to the law as a result of the changes and was seen as an important innovation. Provisions regarding the temporary period are included in Article 287 of the EBL. According to the relevant article;

"Upon the request for concordat, when the court determines that the documents specified in Article 286 are completely available, it immediately issues a temporary respite decision and takes all the measures it deems necessary to preserve the debtor's assets, including the situations in the second paragraph of Article 297.

If the initiation of composition proceedings is requested by one of the creditors, a temporary respite decision is given if the debtor submits the documents and records specified in Article 286 completely and within a reasonable period of time given by the court. In this case, the expenses required for the preparation of the mentioned documents and records are covered by the creditor. "In case the documents and records are not submitted on time and completely, a temporary respite decision will not be given and the concordat request made by the creditor will be rejected."
After the concordat petition and the above documents attached to the petition are submitted to the court, a formal examination is carried out by the court. In this review, it is checked whether there are any deficiencies in the documents. If there is no deficiency in the documents, this time a temporary respite decision is made. If there is no deficiency in the documents, this decision must be made. Additionally, the law states that the decision must be made immediately. The review conducted before the temporary respite decision is made may be conducted with or without a hearing.

Removal of Temporary Deadline

The article of the law states that Articles 291 and 292 regarding the removal of the temporary period will be applied comparatively. Accordingly; Following the issuance of a temporary respite decision, the temporary respite decision may be lifted and a bankruptcy decision may be issued when the circumstances specified in Article 292 of the law arise. In the following cases, the concordat application may be rejected and a bankruptcy decision may be issued against the debtor:

If bankruptcy is necessary to protect the debtor's assets.

If it is understood that the concordat will not be successful.

If the debtor acts contrary to Article 297 or does not comply with the instructions of the commissioner "or if it appears that the debtor acts with the aim of causing damage to the creditors".

If a capital company or cooperative that is understood to be insolvent waives its concordat request.

More detailed explanations will be made under the heading of removal of the definitive deadline regarding these cases and reference will be made to sample decisions.

Results of the Temporary Respite Decision

In the justification of the government draft, it is stated that the temporary grace period is aimed at quickly providing temporary legal protection to the debtor in difficulty of payment. It is not possible to pursue the debtor with a temporary respite decision. (Some special cases are reserved.) The debtor's power of disposition continues after the decision. However, it is under the control of the concordat commissioner in its transactions.

288/1. According to the article, the temporary respite has all the consequences of the definitive respite. All the provisions that we will list below under the heading "consequences of the definitive deadline" also apply here. (EBL 294 -297)

No legal action can be taken against the decisions regarding the acceptance of the temporary respite request, the appointment of a temporary commissioner, the extension of the temporary respite and the decisions regarding the measures.

Temporary Grace Period
The temporary period is three months. The court may extend the temporary period for a maximum of two months upon the request of the debtor or the temporary commissioner before the end of this three-month period. If the debtor requests the extension, the opinion of the temporary commissioner is also taken. The total duration of the temporary respite cannot exceed five months.

WHAT IS TEMPORARY CONCORDATE COMMISSIONER? - WHAT ARE THEIR DUTIES?

EBIT 287/3. According to the article:

With the temporary respite decision, the court appoints a temporary concordat commissioner to closely examine whether it is possible for the concordat to succeed. Three commissioners may be appointed when necessary, taking into account the number of creditors and the amount of receivables. If three commissioners are appointed, one of the commissioners is selected among the independent auditors authorized by the Public Oversight, Accounting and Auditing Standards Authority, provided that they operate in the province where the court is located. Article 290 is applied by analogy in this regard.

Explanations on the subject are made below under the title of duties of the concordat commissioner.

ANNOUNCEMENT OF TEMPORARY DECISION - OBJECTION TO TEMPORARY DECISION

The court's temporary respite decision is announced in the trade registry gazette and the official announcement portal of the Press-Advertising Agency and is immediately notified to the land registry directorate, trade registry directorate, tax office, customs and postal administrations, the Banks Association of Turkey, the Participation Banks Association of Turkey, local chambers of commerce, chambers of industry, movable asset exchanges, Capital Markets Board and other necessary places. It is also stated in the announcement that creditors may object with a petition within seven days from the announcement and claim with their evidence that there is no situation requiring a concordatum period, and within this framework, they may request the court to reject the concordatum request. (EBL 288/2)

Decisions regarding the extension of the temporary period and the rejection of the concordat request by removing the temporary period are also announced in accordance with the second paragraph and notified to the relevant authorities. (EBL 288/3)

As stated in the decision No. 2020/1401 K. of Ankara BAM 23rd Legal Chamber:
In accordance with the last article 287/ of the EBL, no legal action can be taken against the decisions regarding the acceptance of the temporary respite request, the appointment of a temporary commissioner, the extension of the temporary respite and the measures. According to the article, no legal action can be taken against the decisions regarding the acceptance of the final deadline request.

FINAL DEADLINE IN CONCORDATE

Definite deadline is a special regulation that initiates the concordat process and enables the debtor to benefit from it.

In accordance with Article 289 of the EBL, titled "Definitive Deadline"; The court gives its decision regarding the definitive period within the temporary period.

In order to make a decision about the definitive deadline, the court invites the debtor and the creditor requesting concordat, if any, to the hearing. The interim commissioner submits his written report before the hearing and, if deemed necessary by the court, is present at the hearing to receive his statement. In its evaluation, the court also takes into account the objection reasons put forward by the objecting creditors in their petitions.

If it is understood that the concordatum is possible to succeed, the debtor is given a definite deadline of one year. With this decision, the court decides that the temporary commissioner or commissioners will continue their duties unless there is a situation that requires a new appointment and entrusts the file to the commissioner.

An additional board of creditors may be formed by the court upon a definitive deadline or at a time deemed appropriate within the final deadline, provided that it does not exceed seven creditors, no fees are assessed and it is an odd number. In this case, creditor classes whose receivables differ from each other in terms of legal nature and pledged creditors, if any, are fairly represented in the creditors' board. The opinion of the commissioner is also taken when forming the board of creditors. The board of creditors meets at least once a month and makes decisions by majority vote of those present. The commissioner is present at this meeting and records the decisions taken in the minutes by obtaining the signatures of the meeting participants. Taking into account the number of creditors, the amount of receivables and the diversity of receivables, the cases in which a creditors board will be compulsorily formed and other matters related to the creditors board are specified in the regulation put into effect by the Ministry of Justice.
In special cases of difficulty, the final deadline may be extended by the court for up to six months upon the request and reasoned report of the commissioner explaining this situation. The debtor may also request an extension pursuant to this paragraph; In this case, the opinion of the commissioner is also taken. In both cases, the extension request is made before the definitive deadline expires, and the opinion of the board of creditors, if any, is taken before making the extension decision.

Decisions regarding granting a definitive deadline, extending the definitive deadline, and rejecting the concordat request by removing the definitive deadline are announced in accordance with Article 288 and notified to the relevant authorities.

Unlike the temporary respite, when deciding on a definitive respite, a hearing must be held and the representatives of the debtor company must be heard. Otherwise, the right to legal hearing is considered violated. A decision of Istanbul BAM on the subject is as follows:

"Before making a decision in accordance with Article 292 of the Bankruptcy Bankruptcy Bankruptcy, the court invites the debtor and the creditors requesting concordat and the board of creditors, if any, to the hearing; and invites other creditors if it deems necessary. If it is understood that the concordatum will not be successful, it is regulated that the debtors subject to bankruptcy must be declared bankrupt ex officio. It is understood from the scope of the file that the authorized representative of the debtor company requesting concordat was not summoned to the court and heard during the trial, and the mandatory provision of the law was not fulfilled. In this case, "It is not considered appropriate to make a decision without hearing the official of the debtor company requesting concordat." 45.HD K. 2021/208

WHAT IS THE BOARD OF CREDITERS? HOW TO INSTALL? WHAT ARE THEIR DUTIES?

Article 289/4 of the EIC. The article includes the regulation that the board of creditors will be formed together with the final deadline decision. The regulation in this article was seen as an important change and the following statements were used in the justification of the government draft:
"As a novelty in terms of our provisions regarding ordinary concordat, the court that decides on the final deadline may also establish a creditors' board with this decision or at a time deemed appropriate within the final deadline, provided that it does not exceed seven creditors and no fee is assessed. While making this decision, the court essentially considers the number of creditors, the amount of receivables, the number of creditors, the amount of receivables, the number of creditors, the amount of receivables, the number of creditors, the amount of receivables, "It will take into account criteria such as the size of the business; a practice in which a board of creditors will be appointed for every business requesting concordat, this board should be established in special cases defined in the article."

According to this article; An additional board of creditors may be formed by the court upon a definitive deadline decision or at a time deemed appropriate within the final deadline, provided that it does not exceed seven creditors, no fees are assessed and it is an odd number. In this case, creditor classes whose receivables differ from each other in terms of legal nature and pledged creditors, if any, are fairly represented in the creditors' board. The opinion of the commissioner is also taken when forming the board of creditors. The board of creditors meets at least once a month and makes decisions by majority vote of those present. The commissioner is present at this meeting and records the decisions taken in the minutes by obtaining the signatures of the meeting participants. Taking into account the number of creditors, the amount of receivables and the diversity of receivables, the cases in which a creditors board will be compulsorily formed and other matters related to the creditors board are specified in the regulation put into effect by the Ministry of Justice.

As can be seen, the law has made a general regulation and stated that specific issues will be regulated by regulation. From this point of view, it is necessary to mention the provisions of the regulation. According to the regulation:

After the court decides on a final deadline or at the latest after the creditors notify their receivables in accordance with Article 299 of the Law and the debtor's declaration about the creditors is received in accordance with Article 300 of the Law, a board of creditors may be formed by taking the opinion of the commissioner, provided that there are not more than seven creditors, no fee is assessed and it is an odd number.
In this case, creditor classes whose receivables differ from each other in terms of legal nature and pledged creditors, if any, are represented equitably in the creditors' board.

Situations Where the Board of Creditors Will Be Mandatory

ARTICLE 22

1- Receivables with substantially similar legal characteristics are included in the same creditor class. Pledged creditors are considered a separate class in terms of their receivables that cover the value of the pledge.

2- Provided that there are at least three classes of creditors, it is mandatory to form a board of creditors if the number of creditors exceeds two hundred and fifty or the amount of receivables exceeds one hundred and twenty-five million Turkish Liras.

Duties of the Board of Creditors

ARTICLE 23

1- The board of creditors supervises the activities of the commissioner; It may make recommendations to the commissioner and express its opinion to the court in cases stipulated by the Law.

2- If the board of creditors does not find the activities of the commissioner sufficient, it may request the court to replace the commissioner with a reasoned report. The court makes a final decision on this request after listening to the debtor and the commissioner.

Working Procedures and Principles of the Board of Creditors

ARTICLE 24

1- The board of creditors meets at least once a month. Ordinary monthly meetings of the board of creditors are held on the date and place determined and notified by the commissioner.

2- The board of creditors may also meet at any time upon the request of the absolute majority of its members. In this case, it is mandatory to notify the commissioner about the meetings to be held.

3- The board of creditors takes decisions by majority vote of those present at the meeting. The commissioner is present at the meetings and records the decisions taken in the minutes by obtaining the signatures of the meeting participants.

Finally, it should be noted that one of the duties of the board of creditors is to supervise the activities of the concordat commissioner. According to Article 290 of the EBL, which regulates this issue:
"The board of creditors supervises the activities of the commissioner; it can make recommendations to the commissioner and express its opinion to the court in cases stipulated by law. If the board of creditors does not find the activities of the commissioner sufficient, it may request the court to replace the commissioner with a reasoned report. The court makes a final decision on this request after listening to the debtor and the commissioner."

WHAT IS CONCORDATE COMMISSIONER?

Concordat commissioner refers to the commissioner appointed by the commercial court in accordance with Article 287 of the EBL. The commercial court must appoint a commissioner with a definitive deadline decision. With this decision, the court decides that the temporary commissioner or commissioners will continue to serve, unless there is a situation that requires a new appointment, and entrusts the file to the commissioner. After the court decides on a definitive deadline, one or three commissioners are appointed.

The appointment of the commissioner does not restrict the debtor's power of disposition. However, the debtor cannot establish a pledge, act as a guarantor or make gratuitous dispositions as of the respite decision, without the permission of the court; He cannot transfer or encumber his real estate, movables that are important for the continuation of the activities of the business, and the permanent installation of the business. Otherwise, the transactions are void. Before making a decision on these transactions, the court must obtain the opinion of the commissioner and the consent of the board of creditors.

If the debtor acts contrary to this provision or the commissioner's warnings, the court may revoke the debtor's authority to dispose of his property or make a decision within the framework of Article 292.

Again, according to Article 297 of the EBL; The debtor may continue his business under the supervision of the commissioner. However, when deciding on a deadline or within the deadline, the court may decide that some transactions can only be carried out validly with the permission of the commissioner or that the commissioner continues the activities of the business instead of the debtor.

According to Article 5 of the Regulation on the Composition Commissariat and the Board of Creditors:

(1) The court elects the commissioner from the list created by the regional board established in the regional court of justice to which it is affiliated. If there is no commissioner to be appointed in this list, an appointment is made from outside the list and this appointment is notified to the regional board.
(2) In case three commissioners are appointed; One of the commissioners is selected among independent auditors, provided that they operate in the province where the court is located. It is preferred that one of the commissioners to be elected be a lawyer.

Duties of the Concordat Commissioner

The duties of the concordat commissioner are listed in Article 290 of the EBL. Accordingly, the duties of the concordat commissioner are as follows:

a) To contribute to the completion of the concordat project.

b) Supervising the activities of the debtor.

c) To perform the duties given in this law.

d) To submit interim reports on the matters requested by the court and within the periods it deems appropriate.

e) To inform the board of creditors about the progress of the concordat at regular intervals.

f) To provide information to other requesting creditors about the course of the concordat and the current financial situation of the debtor.

g) To fulfill other duties assigned by the court.

The provisions of the 8th, 10th, 11th, 16th, 21st and 359th articles are also applied to the commissioners by analogy.

Complaints regarding the commissioner's transactions regarding the concordat are finalized by the commercial court of first instance.

Legal Responsibility of the Concordat Commissioner

EBIT 290/5. According to the article; The provisions of the fourth and fifth paragraphs of Article 227 apply to the responsibilities of the commissioner. In that case, the concordat commissioners are responsible for the damage resulting from their faults. These cases are heard in the courts of justice. Again, commissioners are considered civil servants in the implementation of the Turkish Penal Code.

CONSEQUENCES OF THE DEFINITIVE DELAY

We have mentioned above the appointment of a commissioner and the formation of the board of creditors, which are the results of the definitive deadline. Apart from these, there are some other consequences of the final deadline decision. It is necessary to examine these results separately, in terms of the debtor, the creditor, the pledged creditors and the contracts.

Consequences of the Definitive Deadline for Creditors
The consequences of the definite deadline for creditors are regulated in Article 294 of the Law. Accordingly: During the period of time, no prosecutions can be made against the debtor, including the proceedings carried out in accordance with the Law No. 6183 on the Collection Procedure of Public Receivables, dated 21/7/1953, and previously started proceedings will be stopped, provisional injunctions and provisional attachment decisions will not be implemented, and statutes of limitations and foreclosure periods that can be interrupted by a follow-up transaction will not apply.

For the privileged receivables written in the first row of Article 206, proceedings can be made through sequestration. Privileged receivables are as follows:

Receivables of workers, including notice and severance pay, based on the employment relationship and accrued within the year before the bankruptcy is filed, and notice and severance pay they are entitled to upon termination of the employment relationship due to bankruptcy,

Employers' debts to facilities or associations that have gained legal personality and have been established for the purpose of establishing or maintaining aid funds or other aid organizations for workers,

All kinds of alimony receivables arising from family law that have accrued within the last year before the bankruptcy is filed and must be fulfilled in cash. Unless the approved concordat project contains a provision to the contrary, interest will stop accruing on all kinds of receivables that are not secured by pledge as of the definitive deadline date. Settlement is subject to Articles 200 and 201 of this Law. In the implementation of these articles, the date of the announcement of the temporary respite is taken as basis. The provision of Article 186 is applied to the seized goods to the extent that it complies with their nature. According to the provision of this article:

When bankruptcy is filed with seized goods, the seized goods that have not been converted into cash are included in the table.

The cost of the seized goods converted into cash before the bankruptcy is filed is distributed to the creditors who have seized them in accordance with the provisions of Articles 138 to 144. The remaining portion is transferred to the bankruptcy estate.

If a contract for the transfer of a future receivable was made before the concordat period was granted and the transferred receivable was born after the concordat period was granted, this transfer is null and void.

Receivables that are not subject to money are converted into money receivables of equal value by the creditor and reported to the commissioner. However, the debtor is free to undertake the exact performance of the commitment with the approval of the commissioner.

Consequences of the Definitive Deadline for Pledged Creditors
During the grace period, due to the receivables secured by pledge, a pursuit can be initiated by converting the pledge into cash, or the already started pursuits can be continued, but due to this follow-up, preservation measures cannot be taken and the pledged goods cannot be sold.

However, if the pledged property is not expected to be used by the business according to the concordat project or if its value will decrease or its preservation will be costly, its sale may be allowed according to the procedure in the second paragraph of Article 297. From the sale proceeds, the pledged creditor is paid up to the pledge amount. (EBL Article 295)

Consequences of the Definitive Deadline in Terms of Contracts

Regardless of whether the other party of the contract is affected by the concordatum project or not, it is essential to continue the "contracts" to which the debtor is a party and which are important for the continuation of the activities of his business. The provisions in these contracts stating that the debtor's request for concordatum will constitute a violation of the contract, will be considered a justifiable reason for termination, or will make the debt due, will not be applied in case the debtor resorts to concordatum. Even if there is no such provision in the contract, the contract cannot be terminated on the grounds that the debtor has applied for concordat. "Within the scope of this paragraph, the obligations owed due to contracts continuing during the temporary and definitive period are mutually performed."

The debtor may terminate the "overly burdensome" permanent debt relations to which he is a party and which prevent the concordatum from achieving its purpose, at any time with the appropriate opinion of the commissioner and the "permission" of the court. In this context, the compensation to be paid is subject to the concordat project. Special provisions regarding termination of service contracts are reserved. (EBL Article 296)

Consequences of the Definitive Deadline for the Debtor

The debtor may continue his business under the supervision of the commissioner. However, when deciding on a deadline or within the deadline, the court may decide that some transactions can only be carried out validly with the permission of the commissioner or that the commissioner continues the activities of the business instead of the debtor.
The debtor cannot establish a pledge, act as a guarantor or make gratuitous dispositions as of the respite decision, without the permission of the court; He cannot transfer or encumber his real estate, movables that are important for the continuation of the activities of the business, and the permanent installation of the business. Otherwise, the transactions are void. Before making a decision on these transactions, the court must obtain the opinion of the commissioner and the consent of the board of creditors.

If the debtor acts contrary to this provision or the commissioner's warnings, the court may revoke the debtor's authority to dispose of his property or make a decision within the framework of Article 292.

Decisions taken within the scope of the first and third paragraphs are announced in accordance with Article 288 and notified to the relevant authorities. EBL Article 297

TRANSACTIONS RELATED TO THE MEETING OF CREDITERS

Creditors are invited to declare their receivables within fifteen days from the date of announcement, through an announcement to be made by the commissioner in accordance with Article 288. In addition, a copy of the announcement is sent by mail to creditors whose addresses are known. The announcement also includes a warning that creditors who do not declare their receivables will not be accepted into the negotiations of the concordat project unless they are registered in the balance sheet. (EIC 299)

The Commissioner invites the debtor to make a statement about the claimed receivables. The Commissioner makes the necessary examinations on the debtor's books and documents to determine whether the receivables exist or not, and states the results in the report to be submitted in accordance with Article 302.

After the preparation of the concordat project, notification and investigation of receivables are completed, the commissioner invites the creditors to meet to discuss the concordat project with a new announcement to be made in accordance with Article 288. The meeting date must be at least fifteen days after the announcement. The announcement also states that creditors can review the documents within seven days before the meeting. In addition, a copy of the announcement is sent by mail to creditors whose addresses are known. (EBL 391)

CREDITERS MEETING

The creditors' meeting is held for ordinary receivables. Receivables secured by pledge are not within this scope. According to Article 302 of the EBL:

The commissioner chairs the creditors' meeting and gives a report on the debtor's situation.

The debtor is obliged to be present at the meeting to make the necessary explanations.

Concordat project;
a) Half of the registered creditors and receivables, or

b) If it is signed by a majority exceeding one-fourth of the registered creditors and two-thirds of the receivables, it is deemed to be accepted.

Only creditors affected by the concordat project can vote in the voting. The creditors of the privileged receivables listed in the first row of Article 206, the debtor's spouse and child, and his/her spouse's mother, father and sibling, even if the marriage bond has been terminated, are not taken into account in the calculation of the majority of the receivables and creditors.

Receivables secured by pledge are taken into account for the part they remain unsecured as a result of the value assessed in accordance with Article 298.

The court decides whether and to what extent receivables that are contested or subject to a delaying condition or subject to an undetermined maturity will be taken into account. However, future court decisions regarding these allegations are reserved.

The concordat report created as a result of the negotiations of the concordat project is signed immediately, including the acceptance and rejection votes. Annexations made within seven days following the end of the meeting are also accepted.

The Commissioner shall submit to the court, within seven days at the latest after the end of the accession period, all documents related to the concordat and his reasoned report on whether the concordat project has been accepted or not and whether its approval is appropriate.

EXAMINATION OF CONCORDATONE IN THE COURT

The court, which receives the reasoned report of the commissioner and the file, begins the trial to decide on the concordat. After hearing the commissioner, the court must make its decision within a short time and probably within a certain period of time. The hearing date appointed to make the decision is announced in accordance with Article 288. It is also stated in the announcement that those who object may attend the hearing, provided that they notify their reasons for objection in writing at least three days before the hearing date.

If it is understood that a decision cannot be made within the definite deadline in the trial regarding the concordat; If the court deems it necessary, it may decide to continue the grace period until the decision is made, by obtaining a reasoned report from the commissioner. This period cannot be more than six months. (EIC 304)

CONSTRUCTION CONDITIONS AND ANNOUNCEMENT OF CONCORDATE
According to Article 305 of the EBL, the approval of the concordat project, which is accepted at the meeting held in accordance with Article 302 and with the votes cast within the accession period, is subject to the fulfillment of the following conditions:

a) It is understood that the amount offered in the ordinary concordat will be more than the possible amount that will be received by the creditors in case of bankruptcy of the debtor; It is understood that the proceeds obtained in case of conversion into cash in concordatum by abandoning the assets or the amount offered by the third party will be more than the amount that can be obtained in case of liquidation through bankruptcy.

b) The proposed amount should be proportional to the debtor's resources (in this context, the court also evaluates whether the expected rights of the debtor will be taken into account and, if so, to what extent).

c) The concordat project has been accepted by the majority stipulated in Article 302.

d) The full payment of the receivables of the privileged creditors in the first row of Article 206 and the performance of the debts contracted with the permission of the commissioner within the deadline must be secured by sufficient collateral unless the creditor explicitly renounces this (the sixth paragraph of Article 302 is applied by analogy).

e) The litigation expenses required for the approval of the concordatum and the fee to be collected on the money agreed to be paid to the creditors in case of approval of the concordatum are deposited by the debtor in the court cashier before the approval decision.

If the court finds the concordat project inadequate, it may request that any corrections it deems necessary be made, either on its own or upon request.

In the decision to confirm the concordat, it is stated to what extent the creditors have given up their receivables and within what timetable the debtor will pay his debts. (306/1)

In the decision, a trustee may be appointed to take the necessary supervision, management and liquidation measures to ensure the fulfillment of the approved concordatum. In this case, the trustee reports every two months to the court that issued the certification decision on the status of the debtor's business and whether it maintains its ability to pay its debts in accordance with the project; Creditors can review this report. (306/2)

The approval decision is announced by the court in accordance with Article 288 and notified to the relevant authorities. (306/3)

RESULTS OF THE APPROVAL OF CONCORDATONE

The concordat becomes binding with the confirmation decision. In the approved concordat project, it can also be decided that the concordat will become binding once the approval decision becomes final; In this case, the effects of the grace period continue until the date on which the concordat becomes binding, without prejudice to the exceptions stipulated in the law.

The concordatum, which has become binding, is mandatory for all receivables arising within the period before the concordatum request or without the permission of the commissioner.

The provision of the second paragraph of this article does not apply to the privileged receivables listed in the first paragraph of Article 206, the receivables of pledged creditors in an amount that covers the value of the pledge, and the public receivables within the scope of Law No. 6183.

"Debts contracted with the permission of the commissioner after the temporary respite decision, including loans given by credit institutions, are not subject to the concordat conditions in the ordinary concordat, in case of default, they can be subject to enforcement proceedings even during the respite and are paid immediately after the pledged receivables within the scope of Article 206, before all other receivables; in the concordat by abandonment of assets or in a subsequent bankruptcy. "It is considered table debt within the scope of Article 248." The same rule also applies to counter-performances in permanent debt relations in which the debtor, who accepts the performance of the counter-performance with the permission of the commissioner, is a party. (EBL 308/c)

Creditors whose receivables have been objected to may file a lawsuit within one month from the date of announcement of the confirmation decision. (İİK308/b-1)

The court that gives the confirmation decision may decide that the share of the disputed receivables in accordance with the concordat project will be deposited by the debtor in a bank determined by the court until the decision is finalized. Creditors who have not filed a lawsuit within the time limit cannot demand payment from this share; In this case, the deposited share is returned to the debtor. (EBL 308/b-2)

When the concordat becomes binding for the parties, the liens placed in the proceedings initiated before the temporary respite decision and which have not yet been converted into cash are annulled. (EBL 308/ç)

The provision of the first paragraph does not apply to liens placed for receivables within the scope of the third paragraph of Article 308/c. (EBL 308 c/2)

•Promises made by the debtor to one of the creditors in excess of what is foreseen in the concordat project are void. (308/d)

It is useful to focus on Article 308/c of the Law here. Creditors have the right to pursue transactions made within the concordat period. The following statements were used in the decision numbered 2021/8132 K. of the 12th Civil Chamber of the Supreme Court of Appeals on the subject:

If a lawsuit is filed against the debtor requesting concordat, the debtor will continue his commercial life from where he left off after the deadline decision and will enter into credit/debt relations with third parties. It is stipulated in Article 308/c-4 of the EBL that the debts contracted with the permission of the commissioner after the deadline decision will not be subject to the concordat conditions within the ordinary concordat provisions. With the amendment made by Law No. 7327, it is clearly stated that debts arising with the permission of the commissioner after the temporary period can be subject to enforcement proceedings by creditors in case of default.

CONDITIONS OF NEGOTIATION WITH PLEDGE CREDITORS AND PROVISIONS OF THE STRUCTURING

In ordinary concordat, the debtor requests the restructuring of his debts, which have been pledged in favor of the creditor, in accordance with this article, by stating it in the preliminary project.

The Commissioner invites all pledged creditors to negotiate principal reduction, interest reduction, maturity or other payment offers of the debtor at a time he deems appropriate within a certain period.

If an agreement is reached with the majority of the pledged creditors exceeding two-thirds in terms of the amount of receivables during the negotiation and the seven-day joining period following the negotiation, the commissioner shall record the signed agreements in the minutes and record the agreement with the pledged creditors under a separate and independent heading in the reasoned report to be submitted to the court in accordance with Article 302.

If the debtor's offers are accepted by a majority exceeding two-thirds in terms of the receivable amount, the pledged creditor who cannot agree with the debtor shall be subject to the longest term agreement made with the other pledged creditors, starting from the date of the composition request, by applying the pre-default interest rate agreed upon in the contract between the parties. This issue and the plan regarding the payments to be made by the debtor to the pledged creditors where an agreement cannot be reached are recorded in the minutes by the commissioner and are also included in the reasoned report that the commissioner will submit to the court in accordance with Article 302.

If an agreement cannot be reached with the pledged creditors, this issue is also recorded in the commissioner's reasoned report.
The court shall include the agreements and payment plan in its decision in accordance with Articles 305 and 306, after checking the agreements made with the pledged creditors in terms of whether the two-thirds ratio has been reached and, if there are pledged creditors where an agreement cannot be reached, whether the payment plan to be applied to them complies with the conditions stipulated in this article.

If the creditors' meeting to be held in accordance with Article 302 does not accept the debtor's concordat project, the agreements concluded with the debtor by the pledged creditors who have made an agreement in accordance with this article and the payment plan prepared for the pledged creditors who have not made an agreement will not become valid.

Any pledged creditor against whom performance has not been made in accordance with the agreement may terminate the agreement regarding that pledged receivable by applying to the court that gave the confirmation decision. However, if as a result of this termination, the rate falls below the two-thirds specified in the third paragraph, the pledged creditors who do not accept the debtor's offer and are subject to the payment plan will cease to be bound by this plan, and the pledged creditors who have agreed with the debtor may terminate the agreement.

This article applies exclusively in cases where the debtor proposes to restructure debts that have been pledged in favor of the creditor in ordinary concordat. Articles 285 to 309/1 do not apply to pledged creditors unless expressly stated. (EBL 308/h)

FEES, TAX EXEMPTIONS AND INCENTIVE CERTIFICATES IN CONCORDATE

Within the scope of the approved concordat project;

a) The transactions to be carried out shall be based on the fees subject to the Law on Fees No. 492; The papers to be issued due to these transactions will be exempt from stamp duty,

b) Amounts to be collected by creditors under whatever name, are from the bank and insurance transactions tax to be paid in accordance with the Expense Taxes Law No. 6802,

c) Loans to be extended to the debtor are exempt from the Resource Utilization Support Fund.

These exception provisions apply specifically to the debtor and the creditors within the scope of the project in terms of the transactions specified in the concordat project. Third parties cannot benefit from these exception provisions.

LEGAL REMEDIES AGAINST THE CONCORDATE DECISION
The debtor against the decision regarding concordatum or the creditor requesting concordatum, from the notification of the decision; Other creditors who object may appeal within ten days from the announcement of the confirmation decision. An appeal can be filed against the decision of the regional court of justice within ten days. Appeal and appeal reviews are carried out in accordance with the provisions of the Code of Civil Procedure. (EBL 308/a)

"The case is about the request for a concordatum deadline and confirmation of the concordatum, claiming that all debts will be paid within 60 months. It is understood that the legal remedy is not the same for all decisions made during the concordatum period phase, although some decisions are final, only an appeal legal remedy is envisaged against some decisions, and both appeal and appeal legal remedies are envisaged for some decisions. It is understood that the bankruptcy decision was not made upon the rejection of the concordat respite request. "It is accepted that only the legal remedy of appeal is open for this period, and if the bankruptcy decision is made, it is accepted that both the appeal and appeal legal remedy are open." Y23HD. 2019/1902 K.

"Since the creditors whose receivables are covered by the pledge will not be affected by the concordat project, they have no legal benefit in objecting to the approval of the concordat, it was necessary to reject the appeal application due to the lack of legal benefit.

There is no legal possibility for disputed receivables to be made grounds for appeal and for these amounts to be determined by the regional court of justice.

In accordance with the last article 287/ of the EBL, no legal action can be taken against the decisions regarding the acceptance of the temporary respite request, the appointment of a temporary commissioner, the extension of the temporary respite and the measures. According to the article, no legal action can be taken against the decisions regarding the acceptance of the final deadline request. Ankara Regional Court of Justice 23. HD. 2020/1401 K.

PARTAL TERMINATION OF CONCORDATE

According to Article 308/e of the EBL:

Any creditor against whom performance has not been made in accordance with the concordatum project may retain the new rights he has acquired pursuant to the concordatum and may have the concordatum terminated by applying to the court that approved the concordatum.

An appeal may be filed within ten days from the notification of the decision to be given upon the termination request. An appeal may be filed against the decision of the regional court of justice within ten days from the date of notification.
"The case is primarily about the request for a temporary and definitive respite and then for the acceptance of the concordatum request. According to the second paragraph of Article 308/c of the EBL, "The concordatum that has become binding is mandatory for all receivables arising within the period before the concordatum request or without the permission of the commissioner." According to this regulation, since the provisions of the concordat will be valid for the said debts, whether they are included in the project or not, a table should be added to the judgment and a table outside the table should be added. "Ignoring the receivables of creditors is not in accordance with the said legal regulation." Ankara BAM 23. HD. 2021/840 K.

The creditor who requests termination cannot pursue enforcement proceedings for his own debt without taking this decision. A Supreme Court decision on the subject is as follows:

"As explained in Article 307 of the EBL, any creditor against whom the concordat conditions have not been fulfilled may, while preserving the new rights he has acquired pursuant to the concordat, terminate the concordat for himself by applying to the court that approved the concordat. Without taking into consideration that in the case under investigation, the prosecution cannot be carried out unless the creditor declares that the concordat conditions have been violated and receives a termination decision from the court. Considering that since the abstract has been violated, the person cannot request the enforcement proceedings to be carried out in accordance with the said article..." Y12HD. 1990/10285 K.

COMPLETE TERMINATION OF THE CONCORDATE

Each creditor may request the termination of the concordatum damaged by bad faith from the court that made the decision to confirm it. When the decision for the complete termination of the concordatum is finalized, the situation is announced in accordance with Article 288 and notified to the relevant authorities.

The provision of Article 308 also applies in this case. (EBL 308/f)

With the complete termination of the concordat, the provisions of the concordat are terminated with retroactive effect. Complete termination of the concordat has its provisions and consequences for all creditors upon the application of a single creditor.

It should not be forgotten that complete termination of the concordat is only possible in the presence of bad faith.
"Concordat is an institution accepted for the benefit of honest debtors. Therefore, it can be based on any kind of malicious action that may affect its acceptance. Actions such as misrepresenting or hiding the debtor's income and assets, creating and declaring false debts, providing special benefits to some creditors, or even promising them can be counted as "malicious action". Even after the approval of the concordat, the creditor may request the court to terminate the concordat by stating the bad intentions of the debtor. However, the alleged malicious acts must not have been put forward during the approval of the concordat and should not have been examined and rejected by the court." YHGK 1979/1358 K.

FAILURE TO CERTIFICATE THE CONCORDATONE AND BANKRUPTCY OF THE DEBTOR

If the concordat is not approved, the court decides to reject the concordat request and this decision is announced in accordance with Article 288 and notified to the relevant authorities. If the debtor is a person subject to bankruptcy and one of the direct reasons for bankruptcy exists, the court decides the bankruptcy of the debtor ex officio.

If the concordat process results in bankruptcy, the court that made the bankruptcy decision decides that the liquidation will be carried out according to the simple or ordinary liquidation procedure and that the ordinary liquidation will be carried out by the commissioners when necessary. In this case, the duties and powers of the bankruptcy administration are exercised by the commissioners. (EBL article 308)

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