Turkish industrial debt restructuring and bankruptcy

Turkish companies have faced varying legal outcomes regarding debt restructuring and insolvency.

Initially, several firms were granted one-year definitive concordat periods by commercial courts to facilitate debt restructuring. This included Konel Elektronik A.Ş. in Konya, an exporter of electronic components, and food production companies Alya Meyve ve Gıda Üretim Pazarlama San. ve Tic. Ltd. Şti. and ALN Fruit Gıda San. ve Tic. AŞ in Bursa.

Subsequently, the situation escalated for other industrial manufacturers as concordat applications were rejected. In Konya, MS Dorse Treyler ve Ekipmanları Sanayi ve Ticaret Limited Şirketi, a producer of trailers and machinery, was declared bankrupt. Similarly, in İzmir, Yücelen Vinç Makine Otomasyon Tarım Hayvancılık Sanayi ve Ticaret Limited Şirketi, which manufactured lifting and crane systems for international export, was also issued a bankruptcy decision, leading to liquidation proceedings.

More recently, the concordat process has expanded into other industrial hubs like Gaziantep and Denizli, driven by high production costs and financing difficulties. In Gaziantep, the court approved a concordat project for Alg Life Tekstil Sanayi ve Ticaret Anonim Şirketi and granted a one-year definitive grace period to Sonex Ayakkabıcılık Sanayi ve Ticaret Limited Şirketi, while lifting previous grace periods for Rens Örme Tekstil, Alg Giyim Dış Ticaret, and Butik Apart Turizm ve Ticaret. In Denizli, Uğurlu Baskı Boya Dokuma Tekstil Sanayi ve Ticaret A. Ş. was granted a one-year definitive grace period starting September 22, 2026.