Financial restructuring consulting is necessary for particularly large-scale corporations. Financial restructuring consulting should aim at aims at helping revision and progressive change in the relevant company’s financial structure.
What are 3 main types of financial restructuring consulting in Turkey?
Under Turkish legal framework, there are three main mechanisms for financial restructuring for companies particularly suffering from a financial problems:
-Bankruptcy,
-Concordat,
-Framework agreements.
What is the Definition of Debt Enforcement, Insolvency and Bankruptcy?
Key Definitions Applicable to Financial Restructuring Consulting
It has been largely accepted that those three terms are interrelated and interchangeable.
- Debt Enforcement: Initiating legal action to enforce payment of overdue debts. Indeed, debt enforcement action means the filing a lawsuit to tolerate an overdue payment
- Insolvency: A financial state where liabilities exceed assets, making timely debt repayment impossible. From that sense, the term insolvency means the condition of not having enough money to pay debts. It necessarily follows that the involved person cannot have a chance to meet debt payments on time.
- Bankruptcy: A court-declared process where a debtor’s inability to pay leads to the liquidation or reorganization of assets under judicial oversight.Thirdly, bankruptcy refers to a legal process when the relevant natural or legal person declares his/her/its debts will not be able to be paid.
For more detailed analysis of dispute settlement and litigation in Turkey see our practice areas Dispute Settlement and Litigation
What is the meaning of Concordat?
Concordat looks like to bankruptcy. Any natural or legal person that is unable to pay can be declared bankruptcy. However, concordat is considered as a more useful alternative to bankruptcy. Contrary to bankruptcy, concordat is used to avoid bankruptcy.
What the objective of enforcement and bankruptcy?
In general, fundamental purpose of the enforcement and bankruptcy regulatory framework is to settle disputes between the creditors and debtors concerned.
Enforcement and Bankruptcy Law (Numbered 2004) regulates detailed procedures for insolvency, bankruptcy and enforcement. What is more, the Law in question stipulates the bankruptcy liquidation steps for insolvent debtors.
For more discussion take a look at our article on Enforcement and Bankruptcy Law in Turkey
What is the meaning of financial restructuring?
Financial restructuring means the process of reorganizing the financial structure based on fresh economical requirements or emerging financial strategies. Such steps should be taken delicately by keeping in mind the concerned legal framework. Financial restructuring consulting in Istanbul presents a required step for large-scale companies located in Istanbul.
Financial restructuring is very related to the financial restructuring firms including banking. Therefore, enforcement of banking and finance law.
What are the main legal instruments applicable to Banking and Finance Law in terms of financial restructuring consulting in Turkey?
To clarify there is no specific legislation focusing on payment and settlement systems. Despite this, it is significant to stress at the outset that there are three principal legislations with regard to banking and finance:
- Firstly, Banking Law (Numbered 5411),
- Secondly, Law on Financial Leasing, Factoring, Financing and Saving Financing Companies Law (Numbered 6361)
- Thirdly, Bank Cards and Credit Cards Law (Numbered 5464).
- Last but not least the Regulation on Restructuring Debts to the Financial Sector has play a crucial role upon the scope and nature of financial restructuring consulting in Turkey. The Regulation provides a Framework Agreement (Finansal Yeniden Yapılandırma Çerçeve Anlaşması veya Çerçeve Anlaşma in Turkish)
For more information on how the banking system works in Turkey, take a look at our practice areas
What is the role of financial restructuring consulting in Turkey?
Pi Legal Consultancy has a specialty in core financial restructuring advisory. Our financial restructuring experts offer an effective consultation to, among others, a wide range of sectors on the matter of key financial reactivations including insolvencies. Where there is a need for any application or procedure including a legal action, our proficient lawyers have the capacity to represent our clients very efficiently before all national institutions. Pi Legal Consultancy financial restructuring consulting is very successful in overcoming complexities of restructuring and bankruptcy cases involving extensive knowledge and problem-solving ability. Namely, we offer full-fledged support to a broad range of industries and individuals. Our intention is not only to maximize economic benefits, but also resolve any legal disputes properly.
Our many decades of restructuring and bankruptcy experience covers, inter alia, as follows:
- Debt Restructuring: Reorganizing long-term borrowings.
- Equity Restructuring: Adjusting equity capital.
- Dispute Resolution: Handling disputes between debtors and creditors.
- Legal Representation: Managing litigation and procedural requirements related to insolvency or bankruptcy.
- Tax and Financial Compliance: Navigating taxation issues during restructuring.
What is the role of financial restructuring consulting upon doing business in Turkey?
The most important point about a financial analysis is to collect data from open, accessible, legal and credible resources. Furthermore, every action about the data collection process must be compatible with Turkish intellectual property regulations. In this context, the principles and standards enumerated in the Industrial Property Code (Numbered 6769) must not be violated. Thirdly, any information or data about a business sector or a certain company requires a full-fledged analysis.
For more information concerning the role of finacial analysis of companies, see our article on
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