Pursuant to Article 309 of the EBL, if a debtor whose bankruptcy has been adjudicated requests concordat or if one of the creditors of this debtor requests the initiation of concordat proceedings, the bankruptcy administration, together with its opinion, notifies the creditors of this request to be discussed at the second meeting of creditors or later.
All proceedings until the approval of the concordat and the provisions of the concordat shall also apply here. In the concordat after bankruptcy, the duties of the commissioner shall be performed by the bankruptcy administration. During the period from the date of the meeting where the concordat request is accepted by the creditors until the date of the approval of the concordat by the court, the procedures for the conversion of the assets of the bankrupt to money shall be suspended and this period may not exceed six months. The decision on concordat shall be notified to the bankruptcy administration.
Upon the finalization of the decision on the approval of the concordat, the bankruptcy administration requests the court that ruled on the bankruptcy to lift the bankruptcy. After bankruptcy, concordat may be requested only once within the bankruptcy liquidation.
Conclusion
First of all, before a decision is made about the future of the debtor with the concordat, there are some coercive measures such as stopping the execution proceedings by giving an immediate period of time by the court in order to prevent the debtor from being in a difficult situation with foreclosures and to create a proper and applicable decision environment, and to oblige the debtor to fulfill the contracts if necessary.
Here, the court will create a balance between the continuation of the debtor’s economic existence and the protection of the rights of creditors. In particular, it will be ensured that the first 3-month temporary period is not abused by the debtor.
The new concordat institution is an institution that enables both those who cannot pay their debts on time and those who are likely to be unable to pay their debts on time, as well as for creditors, to restructure the debt in a healthy environment so that the debt can be paid and the debtor to get rid of his debt without bankruptcy, and the creditors to receive a much higher amount of receivables compared to the bankruptcy of the debtor.
In concordat, there is no situation of insolvency, as was the case in bankruptcy postponement in the past. In this respect, it would be the healthiest way for companies and individuals who are likely to be unable to pay their debts in due time to apply to their lawyers to request concordat before they become unable to pay their debts.
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