Concordat, which means extending the maturity of the debt or reducing the debt payments in case the debtor is unable to pay on due date, thus providing an opportunity to pay debts, is a positive initiative compared to bankruptcy. When this situation is reached, concordat request is made in order to avoid bankruptcy. This is an attempt made due to inability to pay debts. Concordat request application is made to the Commercial Court of First Instance in the city where the company is located, after the necessary conditions and documents are fulfilled.
Which Documents Are Required While Preparing the Concordat Project?
Concordat application can also be made by creditors such as the debtor party. The documents that must be submitted to the court together with the Concordat appeal are clearly stated in Article 286 of the relevant law. These documents include the concordat preliminary project, the asset breakdown of the debtor, the creditors, the documents indicating the amount of the creditors, the privilege status of the creditors, the table showing the possible financial gains of the creditors at the end of the concordat process, the independent audit financial analyzes prepared by the institutions and the reports of these analyzes. The temporary period (temporary respite) for the concordat to be concluded by the court may last from three months to five months. Although the final period (definite deadline) is one year, it can be extended twice by the court for six months, if necessary, and thus the approval period of the court may increase to two years.