5- Concordatum: Termination, Unresulted Execution Proceedings and Promises – 2

Unresulted Execution

THE EFFECT OF CONCORDATUM ON UNRESULTED EXECUTIONS (308 / d): 1) The conciliation of the concordat to the parties decreases the foreclosures which are put in the executions initiated before the provisional resettlement decision and which have not been converted yet.

2) The first paragraph of this article shall not apply to the receivable receivables written in the first period of article 206 of the Execution Bankruptcy Law, the receivables of the pledged creditors meeting the value of the foreclosure and the receivables to be made under the Law no. 6183.

Interpretation:

Under no circumstances can the execution proceedings be initiated against the creditors that have been left before the declaration of the Concordatum (except for İİK.206). Otherwise, it does not coincide with the principle of having the honest debtor, the main purpose of the concordat. In this context, the creditors previously left from the declaration of concordat are provided according to the payment plan mentioned in the project. If the plan is not followed, a partial termination may be applied if the court is referred to in section 1 of the letter.

On the other hand, the follow-up of the creditor groups (eg workers’ wages) specified in Article 206 of the İIK can be followed. In other words, workers who cannot take their wages can perform enforcement proceedings even during the concordat process.

In the case of pledged goods, the creditor may not confiscate them. However, the valuations of the pledged goods are made. Execution of the amount can be monitored on the receivable.

Public Receivables: Taxes, insurance contributions and penalties to be paid to the government can be applied to enforcement proceedings.

Promises

Promises made outside the concordat project are null and void. (308/4)

Interpretation

In the Concordatum project, the borrower specifies in which term and in what way to pay its debts. No written or verbal statement of the debtor outside this project is valid. In any case, a written statement requires the approval of the Commissioner. Once this situation is confirmed, it is no longer a promise. If the debtor company does not comply with the terms of the written agreement, enforcement proceedings may be carried out, because the execution can be followed in the contracts made during the concordatum process.