Concordat Lawyer Istanbul
16
Jul
For businesses that cannot pay their debts on time or are in danger of not being able to pay, concordat is an institution that provides restructuring of debts under court supervision. ur.
The chances of success of the application depend on realistic financial data, feasible project and transparent document layout. At the beginning of this frame Kağıthane Enforcement Lawyer The issue should also be addressed together.
What is Concordat?
Concordat is the process where the debtor submits an offer to his creditors that includes a maturity or discount and obtains court approval by legal majority. Debtors with conditions, whether subject to bankruptcy or not, can apply; The creditor may also make a request under certain conditions.
Documents and Evidence that Can Be Prepared
- Balance sheet, income statement and cash flow
- Creditor and debtor lists
- Bank loan and guarantee documents
- Pledge, mortgage and surety records
- Stock, machinery, real estate and company asset records
- Preliminary project and independent audit assurance reports
It is essential that evidence is obtained by lawful methods. Just having the document available may not be enough; It is required to clearly indicate in the petitions which facts you prove and to bring them from the relevant institution when necessary. It is necessary.
Major Issues of Importance in the File
- Accurate and up-to-date display of the debtor's financial situation
- Compatibility of the preliminary project with cash flow and activity
- Separation of pledged, privileged and ordinary receivables
- Saving authority and commissioner approval during the respite period
- Receivable notifications and disputed receivables
- Legal majority, payment sources and certification conditions
Examining these issues systematically before a lawsuit or application helps establish claims correctly and prevent unnecessary procedures. In particular, limitation periods, statute of limitations, duty and authority rules should be checked separately depending on the type of file.
Financial Preparation Before Concordat
Classification of debts on the basis of maturity, guarantee and creditor; Income and expense projections must be prepared with realistic data. Not only the past balance sheet, but also how the business will continue its operations should be explained. Consistency between legal documents and financial statements enables the feasibility of the project to be evaluated and negotiations with creditors to be carried out more smoothly. .
Legal Basis and Basic Principles
Concordat is regulated in Articles 285 and following of the Execution and Bankruptcy Law No. 2004. Preliminary project, asset status, creditor list, comparison table and independent audit documents are important in the application. The effect of temporary and definitive respite on proceedings and contracts is determined by law.
When making a legal evaluation, not only the name of the event; The nature of the parties, the date of the transactions, the development of the dispute, the existing documents and the applicable periods should be considered together. Two files appearing under the same title may have different legal consequences due to their details.
Important: Notification and application periods vary depending on the type of pursuit. Any step taken without considering the time period may affect the right to object or request.
How Does the Process Progress?
| Stage | Action taken |
|---|---|
| first review | Financial statements, debt and asset inventory are prepared. The onset of the dispute, the subsequent conduct of the parties, and the resulting consequences are combined into a single timeline. This study enables the establishment of the link between legal qualification and evidence. |
| Preparation | A realistic cash flow and concordat preliminary project is created. Before the application, it is checked that the requests are measured, feasible and supported by documents. Existing records are also reviewed for basic defenses that the other party may put forward. |
| Application | An application is made to the competent court with documents. The petition and its annexes are presented in an order that the examining authority can easily follow the flow of events. The scope and basis of the requested transaction and the need for temporary protection, if any, are clearly stated. |
| Follow-up | Temporary respite, commissioner review and creditor notifications are followed. Execution of interim decisions, collection of evidence and preparation for the hearing are monitored as separate tasks. As we approach the decision stage, the requests and the latest status in the file are compared again. |
During the process, interim decisions and deadlines given by the court, prosecutor's office, enforcement office, notary, land registry office or other institutions must be followed regularly. dirt. Failure to complete a transaction in a timely manner may result in loss of evidence or claim. In the middle stage of the evaluation Istanbul Company Lawyer The consequences that may arise should also be examined.
Concordat Lawyer The Role of the Lawyer in the Istanbul Process
Representation by a lawyer is not mandatory in every dispute. In addition, it is important to determine the legal nature of the file, apply to the right authority, follow the deadlines, present the evidence and evaluate the legal remedies after the decision. Professional support may be important.
- Determining the strong and risky aspects of the file in advance
- Preparation of petitions and requests in accordance with the concrete case
- Responding to the other party's claims and evidence in a timely manner
- Regular follow-up of hearings and interim decisions
- Evaluating the possibility of compromise and litigation risks together
Creditor Communication and Process Management
The clarity of the restructuring proposal and the clear display of payment sources and schedule affect creditor confidence. The legal position and guarantees of different receivable groups should be examined separately. Notifications made throughout the process, commissioner requests and deadlines given by the court are tracked on a central calendar to prevent lack of documentation and contradictory statements. should.
How Often Should Cash Flow Projections Be Updated?
Estimates at the application date should be reviewed as market, sales and cost conditions change. Differences between actual income and expenses and projections should be explained and their impact on the payment plan should be shown. Up-to-date and transparent cash flow makes it easier to monitor project viability.
How Should Financial Records Be Prepared Before Requesting Concordat?
When considering a concordat application, listing only existing debts is not sufficient. The company's current balance sheet, cash flow, ability to collect receivables, secured debts and ongoing follow-ups should be prepared in harmony with each other. The preliminary project to be submitted to the court should explain with concrete data how the business will continue its operations and with what source it will pay the creditors. Incomplete or contradictory records can undermine the credibility and viability of the project.
What Should Company Management Pay Attention to During the Temporary Respite Period?
A temporary respite decision does not mean that the company can carry out all its transactions freely. The commissioner's supervision, court-imposed restrictions, new borrowings, and dispositions outside ordinary activity must be carefully monitored. Employee payments, tax obligations and critical supply relationships should be carried out on a regular basis; Significant changes in the financial statement are delayed The doer must be documented. Transparent management of the process is important for both creditor confidence and the likelihood of success of the project.
Frequently Asked Questions
Does concordat stop all enforcement proceedings?
The effect of the deadline on proceedings is regulated by law; Pledged receivables, employee receivables and some exceptions may lead to different results.
Is a temporary grace period granted for every application?
The court examines the completeness of the documents and the circumstances of the application. Temporary respite is not an automatic consequence; Project and financial data are important. While final checks are being carried out Company Establishment Lawyer Kağıthane Additional evaluation may strengthen the integrity of the file.
What happens if the concordat is not approved?
Consequences including rejection of the application, removal of the deadline, and bankruptcy may arise depending on whether the debtor is subject to bankruptcy or not.
Does applying for concordatum stop the company's activities?
The aim is to restructure the debts of the business by continuing its operations in a controlled manner. However, the scope and control of transactions may vary depending on the decisions made.
What happens to workers' receivables during the concordat process?
The nature of the receivable and the period in which it arises are important. These receivables should be evaluated separately when preparing employee records and payment plans.
What happens if the concordat project is rejected?
The result is determined by the debtor's legal status, financial situation and the conditions in the file. Alternative configuration and possible follow-up risks should be evaluated in advance.
File-Specific Legal Evaluation
Concordat is not only a legal but also a financial and operational restructuring process. In applications in Istanbul, the coordinated work of lawyers, financial advisors, auditors and company management is necessary for the reliability of the project.
This article has been prepared for general information purposes. It does not constitute legal advice or an opinion on a concrete case.
