With the adoption of the Law no. 7101 on Enforcement and Bankruptcy law no. 7101 and the Amendment of some related Laws in Turkey on February 28, 2018 and the publication of it in the Official Gazette no. 30.361 on March 15, 2018, companies whose financial structure has been impaired have been given the opportunity to apply for concordat as a solution. The concordat process provides the opportunity for well-meaning borrowers who cannot pay their debts for reasons they do not have the opportunity to pay their debts within the framework of a payment schedule by making a debt payment agreement and maturity or decomposition of the debtor’s debts.

“Financial analysis reports prepared by the Capital Market Board or the independent auditing body authorized by the Public Oversight, Accounting and AuditIng Standards Authority, indicating that the proposal in the concordato preliminary project is highly likely to be realized. So much so that this requirement is not applied to small businesses under Article 28 of the Decree no. 635 of the Ministry of Science, Industry and Technology dated 3/6/2011 on the Organization and Duties.” As stated in the above provision, in order for the concordat to take place, the company requesting a concordat must obtain a financial analysis report through an independent audit company. This process helps the authorities who will decide the concordat to better analyze the viability of the concordato project and make decisions.