22.07.2025 08:40
One of Istanbul's long-established healthcare institutions, Özel Çevre Hospital, has filed for concordat due to financial difficulties. The company has been granted a temporary stay of three months, and the court appointed a three-member commissioner board to manage the concordat process within the scope of the temporary stay granted.
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Since 1983, Özel Çevre Hastanesi, which has been operating in the health sector in Istanbul, has applied for concordat due to economic contraction. The healthcare institution, which provides a wide range of services from plastic surgery to in vitro fertilization, and from hair transplantation to general health services, resorted to legal action when it struggled to meet its financial obligations.
3-MONTH TEMPORARY PERIOD GRANTED
The Istanbul 2nd Commercial Court granted a 3-month temporary injunction in the concordat case filed on behalf of Çevre Sağlık Tesisleri A.Ş. and Eskişehir Tüp Bebek Özel Sağlık Hizmetleri A.Ş. During this process, the aim is to examine the company's financial structure and restructure its debts.
3-PERSON COMMISSION ASSIGNED
The court appointed a 3-person commission to manage the concordat process. This commission will oversee the company's financial statements and the agreement process with creditors.
After the announcement of the temporary injunction, creditors wishing to appeal the concordat decision were given a seven-day period. During this time, creditors who submit their objections along with their documents may request the rejection of the concordat application.
HOW DOES THE CONCORDAT PROCESS WORK?
Concordat is a legal remedy that allows debtors who cannot pay their debts or are at risk of not being able to pay to restructure their debts by making an agreement with their creditors within a legal framework. It is regulated under the Turkish Commercial Code and the Enforcement and Bankruptcy Law.
The aim of the concordat is to prevent the debtor's entire assets from being lost through bankruptcy, ensuring that the debtor can continue their commercial life while allowing creditors to collect a reasonable amount.
STAGES OF THE CONCORDAT PROCESS
TEMPORARY INJUNCTION
- The debtor applies to the court for a concordat request.
- Upon request, the court grants a 3-month temporary injunction (which can be extended for another 2 months if necessary).
- During this period, enforcement proceedings are halted, and the debtor can continue to manage their assets in a limited manner.
FINAL INJUNCTION
- If the court finds the conditions suitable at the end of the temporary injunction, it grants a 1-year final injunction.
- During this period, a concordat commissioner is appointed; they oversee the debtor's activities and manage the negotiation process with creditors.
AGREEMENT WITH CREDITORS
- The debtor offers to pay a portion of their debts or extend the maturity.
- If the creditors accept this concordat proposal and the court finds it appropriate, the concordat approval takes place.
- For acceptance, the approval of a certain majority of creditors (in terms of both number and amount of debt) is required.
TYPES OF CONCORDAT
- Ordinary Concordat: This is the most common type. It is a classic concordat agreement made by the debtor with their creditors.
- Concordat After Bankruptcy: This is requested after the debtor has declared bankruptcy.
RESULTS OF CONCORDAT
- Provides protection for the debtor: Enforcement proceedings are halted, interest does not accrue, and guarantees are not violated.
- Offers a framework for creditors: A collection opportunity arises within a specific plan.
- Protects commercial life: Especially for companies, the continuation of activities is ensured.
DIFFERENCE BETWEEN CONCORDAT AND BANKRUPTCY
While concordat is a way out, bankruptcy is a liquidation process. Concordat allows for the continuation of activities, while bankruptcy ends the operation of the business. Concordat by Transfer of Assets: The debtor offers to pay their debt by transferring their assets to the creditors.
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