Court rules for bankruptcy of Turkish coach company Pamukkale
İZMİR
A court in the western province of İzmir has ruled for the bankruptcy of Pamukkale Turizm, one of Turkey’s oldest coach services company.
Pamukkale had applied to a commercial court for concordat in late October last year. The court had given related parties three months to apply against the company’s concordat request.
A concordat aims to protect both the debtors in poor financial standing as well as their creditors. In the event that a debtor and a creditor agree on a concordat, the debtor clears its debts by paying the debt in line with the agreement stipulated under the concordat.
The court also examined Pamukkale’s financial situation over this three-month period.
On Jan. 24, the İzmir court argued that it is impossible for Pamukkale to carry out its commercial operations. It rejected the company’s request for a concordat and ruled for the bankruptcy of the coach services company.
In a statement issued in October last year, Pamukkale said that it was forced to seek a debt restructuring because of the hardship caused by the economic situation.
At that time, the company had employed 3,500 people.
The number of companies seeking legal protection from creditors has hit 846 since the Concordat Law replacing the regulation for suspension of bankruptcy took effect in March, Turkish Trade Minister Ruhsar Pekcan said on Dec. 13.
