Arrangement of Bankruptcy and Composition
As Gülaç Law, we have extensive experience in arrangement of bankruptcy and composition proceedings; so much so that our founding partner Orkun Gülaç bear the title of the first lawyer to get a concordatum ruling in İzmir and second in Turkey.
Before the amendment introduced by Code numbered 7101, Enforcement and Bankruptcy Code numbered 2004 regulated the effect of concordatum on interest accrue. It was stated that “The approved project of arrangement unless stated otherwise stops interest accrue on every credit if not procured by pledge from the date of peremptory term.
Article 294/3 of Enforcement and Bankruptcy Code numbered 7101 is also parallel to the article stated above.
Therefore, the amendment is only on article numbers and both Code regulations ground on the project of arrangement.
Accordigly, in the matter of interest, if there is a regulation in the project of arrangement, then it would be binding.
Despite the Enforcement and Bankruptcy Code states the interest accrue shall start commencing from the date of peremptory term; we believe that it would be more convenient for it to start commencing from the date of temporal term. One of our most important grounds for that belief is that article 288 of Enforcement and Bankruptcy Code, stating temporal term bear legal consequences of peremptory term.
Our other justification is the concordatum institution itself. Inasmuch as, concordatum is an institution which enables restructuring and “getting off the hook” and so the interpretation should be convenient with the purpose of the Code.
Ultimately, we as Gülaç Law, support our clients in every aspect of their restructuring proceedings and make sure they get the most beneficial result in the regard of arrangement of bankruptcy and composition.