Turkish airport builder seeks partner due to financial problems
The groundbreaking ceremony for the Çukurova Airport was held in May 2013. The facility was expected to be the second largest in Turkey, after the planned third airport of Istanbul.Turkey’s Koçoğlu Construction, which won a tender to build the Çukurova Airport for 357 million euros, is now in talks with other companies to form a partnership deal for the project due to financial problems, Turkish Transport Minister Lütfi Elvan has said.
“The company has some financial problems and is in talks with a number of foreign companies. The company has also made an offer to the General Directorate of State Airports Authority (DHMİ) about bringing a partner into the project. The authority is now assessing the proposal. We will be making a decision based upon these assessments,” Elvan said.
Elvan made the comments to Anadolu Agency Dec. 22 after a daily Hürriyet report on the matter.
Koçoğlu has asked for a suspension of bankruptcy, Hürriyet reported. The owner of the company is now in talks with three or four foreign companies to build a partnership in the project, according to sources The Çukurova Airport was expected to be the second largest in Turkey, after the planned third airport of Istanbul. The groundbreaking ceremony for the Çukurova Airport was held in May 2013.
According to legal documents which daily Hürriyet has acquired, the Koçoğlu Group had paid for infrastructure construction activities on the project with 50 million euros from its own financial resources. The company subsequently made a preliminary financing deal with a consortium composed of two public banks and two private lenders for 236 million euros, according to the documents. The two private lenders withdrew from the deal. The company then started to face financial problems, Hürriyet reported.
The Koçoğlu Group sold a number of hotels, helicopters, real estate and other properties to be able to maintain its construction activities at the airport, but it could not overcome its financial problems.
After a court reviewed financial reports and expert reports, it appointed a judicial trustee. This process enables the company to have a temporary shield against any seizure process. The company is now in talks with a number of companies to sign a partnership deal, as Hürriyet daily reported.
The Koçoğlu Group has completed 57 large projects worth 3.5 billion Turkish Liras ($1.5 billion). The group posted a profit of approximately 76.8 million liras ($33.1 million) last year. Koçoğlu is currently engaged in 16 large projects worth a total of 1.41 billion liras ($608 million). Its debts to several banks and factoring companies are reported to be 87 million liras ($37.5 million).