Loans

10/14/2019

Financial Restructuring Process Is Starting for Large-scale Companies

The Financial Restructuring Process (FRP) is starting for large-scale companies with a credit debt of 25 million TL and above to banks and financial organizations. Debtors who are resolved to have gone bankrupt will not be allowed to benefit from the FRP. The debtors that can be included in the FYY process may apply to one of the three creditors with the highest amount owed with a letter of application and undertaking in a format defined in the Framework Agreement with the other documents and information required by the process annexed thereto...

The Banks Association of Turkey (TBB) has announced that it started a financial restructuring process (FRP) for large-scale companies.

According to the statement made by the TBB, large-scale companies with a credit debt of 25 million TL and above to banks and financial organizations may take part in the Financial Restructuring Process (FRP). Small-scale companies with debt below 25 million TL will be allowed to benefit from the FRP upon approval. Debtors who are resolved to have gone bankrupt will not be allowed to benefit from the FRP. The debtors that can be included in the FYY process may apply to one of the three creditors with the highest amount owed with a letter of application and undertaking in a format defined in the Framework Agreement with the other documents and information required by the process annexed thereto. Creditors that sign the Framework Agreement will be announced by the Banks Association of Turkey. 

The statement of the TBB continues as follows;

The process of maintaining the status will be initiated for the debtors whose application is accepted, and if this process is initiated, the organizations that signed the Framework Agreement will not be allowed to conduct execution proceedings for the receivables restructured for the debtor (except for losses of rights due to the expiration of a limitation period or lapse of time), continue the ongoing proceedings, initiate new proceedings or take any other legal action.

If the debtor has a scheduled date of sale, an ongoing lawsuit of termination of a tender, committed debt, an ongoing lawsuit of revocation of authority upon legal proceedings initiated by a Creditor before the application date, such actions will not be affected by the financial restructuring process. If a Creditor fails to fulfill their liabilities arising from the Framework Agreement, an Arbitration Tribunal to be appointed by the Board of Directors of the Banks Association of Turkey will have jurisdiction. "

As can be remembered, the new Regulation of the Banking Regulation and Supervision Authority (BRSA) on the amendment of the "Regulation on Restructuring of Debts to the Financial Sector" took effect upon publication in the repeated issue of the Official Gazette on September 12, 2019 TEBA:1933/ September 13, 2019