TURKEY BANS SUSPENSION OF BANKRUPTCY DURING THE STATE OF EMERGENCY

Within the scope of state of emergency 669 numbered statutory decree on taking some measures due to state of emergency and establishment of National Defense University and amendments on some codes has been published in the 31.07.2016 dated official gazette. With this Statutory Decree, suspension of bankruptcy is banned during the state of emergency, and requests regarding this will be rejected by the affiliated court. Herein ban has been stated in the Art. 4 of the said statutory decree has been stated as following: “during the state of emergency according to the Art.179 of the 09.06.1932 dated 2004 numbered Bankruptcy and Enforcement Law capital companies and cooperatives cannot request for suspension of bankruptcy and such requests are denied by the court”.

According to Art.179 of the 2004 numbered Bankruptcy and Enforcement Law, if capital companies and cooperatives declare that their debts are more than their assets and if the court approves this declaration decree of bankruptcy can be given for these structures. Also these persons, were able to request the court for suspension of bankruptcy by presenting a recovery project regarding the possibility of the company/cooperative’s financial state’s recovery. If the court finds the project serious and trustworthy, it may decide for bankruptcy and with this decision no enforcement can be made for the debtor. Right now, according to the 669 numbered statutory decree Art.4 requests for suspension of bankruptcy will be rejected during the state of emergency.