Concordatum Questions: FAQs

1-What Is Concordatum?

Concordatum is not a bankruptcy, lease method or deliberate borrowing and government asylum method. (See Behavior of Commissioner for Borrowers and Creditors) Article 8 Concordatum; It is an application that is asked by the commercial courts to declare the honest debtor in case of failing to pay the debt or pay the future.

2-How to Request Concordat?

There is no obligation to be a company to demand concordatum. Commercial enterprises or individuals can apply to the court with the necessary documents and request concordatum. However, it is uncommon for the participants to conclude the concordance of the citizens, because the cost of the court, the cost of file preparation and the cost of attorneys is low, and for the future of extra burden for our middle-income citizens.

“Under the risk of not paying his debts, due to be paid or due to maturity
any borrower may request the concordatum ……………………………………. “Law No. 2004 of the Bankruptcy Act No. 2004.
In addition, the creditor or the person or institutions that are owed to him may request concordatum for the persons or institutions.

3-How to request Concordatum?

In order to demand the concordatum, the documents which prove the debtor’s situation briefly in financial terms and which the consortium will contribute to him / her and the creditors shall be submitted to the court of first instance. It may take time to prepare these documents; because details of all important accounting accounts of a company are specified in an appropriate manner. If the application is a company or a commercial enterprise, a commercial court is included in the commercial court which includes the boundaries of the central address, and the person is the commercial court which includes the address of the residence address. If there is no commercial court in the region, a court of law is applied.

4- What is Concordatum File?

The concordatum file is the totality of the documents submitted to the court for concordatum. The prepared file is examined by the court. If the file contains all the documents requested by the court, as per the law, a temporary 3-month deadline is immediately announced by the court. In this respect, it is of great importance that the file of the concordatum is formed according to the standards of the court. Otherwise, the court may refuse the application or give the borrower time to complete some minor deficiencies.If the files are accepted by the court, an advance and court fee shall be paid to the court for filing a lawsuit for the advertisement.

5- How much expenditure will be paid for the concordatum declaration?

Expenditures for the proclamation of the concordatum;
• Cost of the Court
• File Preparation Cost
• Attorney Costsare listed.

The cost of the court is mainly; The 5-month commissioner (s) shall include advance payment and advance of bankruptcy. Together with other expenses, this amount is between 25.000 TL and 80.000 TL depending on the number of commissioner appointed and the commissioner fee. This amount applies to applications made on behalf of a single company or individual.Here’s how to calculate the cost of the court for multiple applications.Other costs vary depending on the institutions.

6- What is the next process after the declaration of concordat?

As a result of the deposit of the file and the court costs by the court, a temporary 3-month period is issued immediately, and 1 to 3 commissars are appointed according to the commercial activity of the debtor and the size of the activity.

7- How is the functioning of the Commissar

The commissioner of the assigned concordat shall carry out transactions with the borrower, as provided for by law (Article 290). Some of these transactions are to clearly determine the debtor’s situation, to communicate with creditors, to pay the debts that are structured or valued, to oversee the activities of the debtor. You can reach all the duties of the Commissioner here.

8- What are the behaviors of the Commissioner for the Borrower and the Creditors?

The appointed commissioner (s) represents the state. For this reason, important decisions taken by the debtor in the concordat process are submitted to the commissioner for approval. The commissioner is responsible for every decision he / she makes. In this process, the commissioner is IIK. According to Article 227 the civil servant counts.

With these responsibilities, the Commissioner observes firstly the rights of the worker and of both the debtor and the creditor. The Commissioner also attaches importance to the continued commercial activities of the company.

That is, the concordatial commissioner; the continuation of trade, workers’ rights, the balance between the debtor and the creditor has to establish a balance. This situation guarantees the creditors’ claims. Pay the debts specified in the file in the specified term; is one of the things that the commissioner should pay attention to.

The Commissioner is obliged to submit a monthly report to the court on the situation of the offender.

9- What are the conclusions of the concordant in terms of debtors and creditors?

After the declaration of the concordat, it is communicated by mail with the creditors specified in the file. In addition, the notice advertisement is published in the advertisement portal www.ilan.gov.tr, which is the press advertisement agency. Those who do not comply with the amount of the receivable, or who do not appear in the list of payers, can apply to the commissary within 7 days of the announcement of the announcement.

In the process of concordat, the debts shall not be canceled and shall not be covered by the state (except for salary payable up to 3 months retrospectively).

Existing debts are promulgated with the application file prepared. So the debtor makes a configuration plan. If the borrower does not comply with this plan, the creditors may appeal the court and request the rejection of the concordat. It is the responsibility of the co-conspirator to follow the payment of the debts that are structured.

The most important result from this is that both the borrower and the creditors of the creditors are guaranteed by the commissioner (s). Workers are detailed in Article 14.)

Today, the majority of companies declaring concordat are the reasons for the declaration of the Concordatum, bank debts and high interest rates. Banks give these debts in return for personal guarantees, cross guarantees, mortgages, guarantees. This situation makes banks more advantageous than the other creditors (market, workers) in case of bankruptcy of the debtor.

Pledged creditors have priority over the law in comparison with other creditors. However, in the decision to declare the concerto, the court may issue a measure for the debtor company’s commercial activities to be pursued by the pledged creditors (many times). overseeing the remaining amounts and the gradual loss of market debts.

10- What is done in case of violations of the concordant?

In the process of concordat, the commissioner informs the court of the report that he / she writes every month when the debtor will disrupt the process or if he determines a fraudulent transaction or intention. Subsequently, the decision of annulment by the court may be given. If the Commissioner considers this situation, it can be decided until a prison sentence. Therefore, the responsibility of the commissioner is very important.

11- What are the Consequences of Concordatum in terms of Workers?

In the application of concordat, workers’ receivables seem to be preferential receivables. According to Article 294 of the Convention, the concordant conditions are not valid for workers in the first rank of Article 206. Workers can apply to the enforcement office for their rights and apply for foreclosures. But; If this situation affects the continuation of the commercial activities of the company to a large extent, the decision to place a measure for these receivables can be issued by the court.

12- What is the Next Operations after 3 Months of Interim?

After a temporary 3-month period, the court can give one of the following decisions based on the commissioner’s report and his opinion on the report.
• Extension of the Interim Officer by 2 months
• Exact Term
• Canceling the concordatum

The commissioner shall continue in the same manner if the temporary contractor is extended for another 2 months. The Commissioner submits a report to the court, indicating his / her appearance before the end of 2 months. After this report, the court decides whether the transition to the final board or cancellation of the concordat.

In the hearings, creditors may also be involved in the petition by submitting a petition to the relevant authority.

In the event of cancellation of the concordat, the shield between the debtor and the creditor shall be lifted and the creditors may initiate the necessary follow-up.
The point to be considered here is how much of the creditors’ creditors can be collected in the cancellation of the concordat.

13- How Does the Final Engineer Work?

In the final deadline, the court extends the concordat application by 12 months. The Commissioner shall continue to carry out his duties as before. In this process, the concordat can also be canceled in the determination of a disabling motion.

The creditors meeting is held for the final contract. This meeting is done by the commissioner, the minutes are kept and the debtor supervises this meeting.

The concordatorium project created at the meeting is presented to the approval of the creditors. Here, voting and pledged creditors are held separately and voted. The vote lasts 7 days. After voting, the commissioner shall submit to the court that the creditors are accepted or rejected by a report indicating his opinion.

According to the report and voting, the court decides to approve or terminate the concordat.
In case of attestation, the concordat shall continue. In case of termination, the concordatum is canceled and the creditors may initiate the follow-up.

14- How does it work after Exact Term?

Towards the end of the Final Authorization, the Commissioner shall submit a report to the court, stating the status of the company and his opinion. According to the claims of the creditors who are involved in this report and the hearing, the court decides on the extension of the final draft for another 6 months or the end of the concordance. If, after six months, the concerto has failed, the court may, with the request of the debtor, give a period of 6 months to sell the pledged goods. If the project was successful, the debtor paid his debts to a large extent and in the manner indicated. This shows that the concordatum has been successful.

15- Will there be interest processing in the concordat?

In the concordatum process, interest processing on non-pledged receivables stops. However, interest payments to the pledged receivables continue until the final date. If the debtor in the final deadline enters the court by providing the necessary conditions, interest processing for the pledged receivables may be stopped by the court. You can access our article on the suspension of interest processing for pledged receivables. While we do not process interest on unqualified receivables, interest processing on pledged receivables is contrary to the principle of equality of law.

Already with the pledged receivable, the creditor, who guaranteed more than his creditor’s account, also creates an injustice in terms of the interest enterprise, the pledged creditor.

16- What Happens to the Workers?

After the declaration of concordat, workers may apply with a petition stating the amount to the commissary for the receivables from the previous period. The 3-month portion of the salary receivables within 1 year is covered by Iskur. To do so, the worker fills the document provided by the Fee Guarantee Fund in an honest manner by clicking here. It then submits this document to the debtor’s authority and to the approval of the concordant officer.

The Concordatum commissariat does not approve the document without verifying the accuracy of the debt. The borrower, who receives the necessary approvals, submits the document to İşkur.

Workers can go to follow-up for compensation and compensation for other months (Article 294 of the Law is followed by the follow-up route for creditors in the first row of Article 206). If a large number of these receivables to prevent the borrower from continuing its commercial activity, the court may take a decision to follow-up on these claims.

The priority of the commissariat during the concordat period; while overseeing the debtor’s continued commercial activities; In this process, the worker may apply to the commissariat on the situation of the worker who has been wronged. The Commissioner may refer to this case in his report to the Court. In the report, the occurrence of a situation that could lead to workers’ grievances may affect the opinion of the court on the debtor. Here is the result; that the rights of workers are not ignored in the concordat.

17- What is the status of the checks in the process of concordatum?

It is not an obstacle to conclude the registration of the postponed check before the announcement of the contract. But; The old term of which is due to be re-scheduled according to the payment plan in the file prepared. In other words, criminal sanctions cannot be applied.