Companies cannot ask to suspend bankruptcy during state of emergency
AP photoCompanies in Turkey have been banned from demanding any bankruptcy suspension as long as the current state of emergency continues, according to a new decree.
“In line with the fourth article of Decree 669, any corporations and cooperatives cannot ask for the suspension of bankruptcy upon the 179th Article of the Execution and Bankruptcy Law No. 2004 during the period of the state of emergency. Such demands will be rejected by the courts,” said the decree, which was published in the Official Gazette on July 31.
Meanwhile, the Turkish Parliament approved a comprehensive draft law amending various laws and regulations with the aim of improving the investment environment in the country.
The law included significant amendments to a number of matters, such as the stamp tax, deferral of bankruptcy and bad checks.
More than 1,000 companies have sought to have their bankruptcy proceedings suspended since the beginning of 2015, but experts warned the misuse of the condition could lead to a domino effect in the economy. Experts have said the suspension of bankruptcy is a method for companies experiencing financial difficulties to recover their losses and improve their condition.