What is Concordat? The Corporate Restructuring Process with Özocak & Altun Law Firm

Economic fluctuations and financial difficulties can challenge even the strongest companies. One of the most important legal protection mechanisms available before reaching the point of bankruptcy is the Concordat procedure.

A Concordat is a judicially supervised restructuring process that enables a debtor company to reach a reasonable and enforceable payment plan with its creditors, while continuing its commercial activities. It protects not only the debtor, but also the legitimate interests of creditors.

What Does a Concordat Filing Provide?

Once a company submits a concordat request:

✔ All enforcement proceedings are suspended
✔ Seizure and foreclosure actions are halted
✔ Certain banking restrictions are lifted
✔ Contractual relationships are preserved
✔ The company is granted a temporary moratorium to continue its operations

This legal protection allows the company to breathe and implement recovery steps efficiently.

Key Actors of the Concordat Process: Concordat Commissioners

The process is supervised by independent and court-appointed concordat commissioners. Commissioners:

• Monitor the company’s financial and operational status

• Protect the rights and interests of creditors

• Evaluate the feasibility of the restructuring plan

• Submit periodic reports to the court

This duty requires high expertise, experience, and neutrality.

Expertise of Özocak & Altun Law Firm

At Özocak & Altun Law Firm,
Attorney Reyhan Özocak Gümüş and Attorney Melisa Altun are licensed Concordat Commissioners.

We provide comprehensive assistance in:

• Preparing legally sound concordat applications

• Designing realistic and profitable restructuring plans

• Coordinating the process with the court and creditors

• Monitoring company performance under commissioner supervision

Our goal is to ensure a secure restructuring path and support the company’s sustainable future.

Concordat Process Step-by-Step

1️⃣ Preliminary Analysis
Financial status, liquidity, and recovery potential are evaluated.

2️⃣ Preparation of the Recovery & Payment Plan
A feasible plan that balances the interests of both the debtor and creditors is prepared with detailed financial reporting.

3️⃣ Court Application & Temporary Moratorium
Following acceptance, legal protection begins and enforcement pressures are eliminated.

4️⃣ Monitoring and Implementation
The company proceeds with its operations under commissioner supervision and transparent reporting.

5️⃣ Creditors’ Voting & Final Moratorium
Upon approval, the company continues on its path fully restructured.

Frequently Asked Questions (FAQ)

➤ Does a company need to be bankrupt to file for a concordat?
No. Concordat should be pursued before insolvency becomes irreversible. The purpose is to prevent bankruptcy.

➤ Are debts completely forgiven in a concordat?
No. Debts are restructured, not erased. They are tied to a court-approved repayment schedule.

➤ How long does a concordat process take?
The temporary moratorium is 3 months and may be extended up to 6 months.
The final moratorium is 1 year, with an option for two 6-month extensions.
The total duration depends on the case.

➤ Must the company stop its operations?
No. The essential aim is to ensure that the company continues its business and regains financial strength.

➤ Do all creditors have to agree?
No. Once the required quorum is met at the creditors’ meeting, the plan becomes binding on all creditors.

➤ What is the role of the concordat commissioner?
To supervise the company, report to the court, ensure transparency, and preserve creditors’ interests.

➤ Can any company request a concordat?
Not necessarily. There must be clear evidence—through expert financial reports—that the business can recover if given the opportunity.