What Foreign Creditors Must Do When a Turkish Buyer Files for Concordat (Konkordato) (2026 Updated Guide)

A Turkish buyer files for concordat while owing money to a foreign supplier. Learn how foreign creditors should register claims, protect voting rights, handle disputed debts, guarantees, foreign-currency claims and recovery options in Turkey.

When a Turkish buyer enters concordat proceedings while owing substantial amounts to a foreign manufacturer, exporter or service provider, the foreign creditor should act immediately. A Turkish concordat is not merely a request by the debtor for additional payment time. It is a court-supervised restructuring procedure under the Turkish Enforcement and Bankruptcy Law that can restrict enforcement proceedings, determine how creditors participate in the restructuring and ultimately make an approved payment plan binding on creditors within its legal scope. During the moratorium, enforcement against the debtor is generally restricted and existing proceedings are generally stayed, subject to statutory exceptions.

For a foreign creditor, the most important practical rule is simple: do not wait for the Turkish buyer to contact you. Monitor the proceedings, register the claim within the announced period, document the entire debt and protect voting, litigation, security and contractual rights separately.

What Is Concordat in Turkey?

Concordat is a judicial restructuring procedure allowing a debtor experiencing financial difficulty to propose a restructuring of its debts under court supervision.

The process can involve a provisional moratorium, a definitive moratorium, appointment of one or more concordat commissioners, registration of creditors’ claims, creditor voting and eventual court approval or rejection of the restructuring proposal.

Does Concordat Mean the Turkish Buyer Is Bankrupt?

No. Concordat and bankruptcy are different proceedings.

The purpose of concordat is generally to provide a viable debtor with an opportunity to restructure its obligations while protecting creditors through judicial supervision.

However, if the restructuring fails and the legal requirements exist, bankruptcy can ultimately become relevant.

Foreign Creditors Should Identify the Court File Immediately

The creditor should determine:

the Turkish buyer’s exact corporate name; the competent Commercial Court of First Instance; court file number; date of provisional and definitive moratorium decisions; identities of the concordat commissioners; current procedural stage; and all published creditor notices.

Do not rely solely on information provided by the debtor’s purchasing department.

Monitor Official Announcements

Important procedural developments are publicly announced during Turkish concordat proceedings.

A foreign creditor that discovers the case late may already be approaching an important claim-registration, voting or litigation deadline.

The creditor should therefore establish active monitoring as soon as it learns that the Turkish customer has requested concordat.

Register the Claim Promptly

One of the most important stages is the invitation to creditors to declare their claims.

Under Article 299 of the Enforcement and Bankruptcy Law, creditors are invited to notify the commissioners of their claims within 15 days from the announcement, subject to the statutory framework. Recent 2026 concordat notices continue to apply this 15-day claim-registration period.

A foreign creditor should treat this as an urgent deadline.

What Happens If the 15-Day Period Is Missed?

A creditor that fails to notify its claim within the prescribed period can face serious procedural consequences, particularly if the debt does not appear in the debtor’s records.

Current concordat notices expressly warn that creditors failing to declare their claims may not be admitted to negotiations where their claims are not recorded in the debtor’s balance sheet.

The creditor should therefore never assume that the Turkish buyer has correctly recorded the debt.

What Documents Should a Foreign Creditor Submit?

The claim file should establish both the legal basis and amount of the debt. Depending on the transaction, relevant evidence may include:

sales contracts, purchase orders, commercial invoices, delivery documents, bills of lading, CMR documents, account statements, acknowledgment of debt, correspondence confirming outstanding balances, payment schedules, bank records, promissory notes, cheques, guarantees and evidence of interest or contractual charges.

The objective is to make the claim readily verifiable.

Do Not Submit Only an Invoice

An invoice can be important, but substantial international claims should generally be supported by the underlying contractual and delivery evidence.

If the debtor later disputes the claim, a complete evidentiary file can become critical.

Reconcile the Account Before Registration

Compare the creditor’s accounting records with the Turkish buyer’s account statement.

Identify unpaid invoices, partial payments, credit notes, returns, set-offs and disputed transactions.

Any difference should be explained clearly.

Foreign-Currency Claims Require Particular Attention

International suppliers frequently hold receivables denominated in euros, US dollars, pounds sterling or another foreign currency.

Foreign-currency claims require careful treatment in the concordat process because conversion can affect the amount used in the proceedings. A 2026 Commercial Court decision addressing a foreign-currency concordat claim applied the Central Bank selling rate corresponding to the final day of the statutory claim-registration period in the circumstances of that case.

The creditor should therefore verify the treatment of its particular foreign-currency claim rather than simply converting the debt using an arbitrary current exchange rate.

Separate Principal and Interest

The filing should distinguish principal, contractual interest, default interest and other claimed amounts where relevant.

The creditor should also examine how the moratorium affects interest on the particular type of claim.

Existing Enforcement Proceedings Must Be Reviewed

If the foreign creditor already started enforcement proceedings against the Turkish buyer, the concordat moratorium can materially affect those proceedings.

During the moratorium, enforcement is generally restricted and existing proceedings are generally stayed, subject to statutory exceptions.

Do not continue enforcement steps automatically without analyzing the moratorium.

Can the Foreign Creditor Start a New Enforcement Proceeding?

The moratorium generally prevents ordinary new enforcement proceedings against the debtor during the protected period, subject to statutory exceptions.

The creditor should therefore shift from a purely enforcement-based collection strategy to active participation in the concordat proceeding.

Existing Attachments Must Be Analyzed Separately

If the creditor obtained an attachment before the concordat, determine its procedural status immediately.

Under Article 308/ç, when the concordat becomes binding, certain attachments imposed in enforcement proceedings commenced before the provisional moratorium and not yet converted into money cease to have effect, subject to statutory exceptions.

This can materially change the creditor’s recovery strategy.

Secured Creditors Require Separate Analysis

If the foreign creditor holds a pledge, mortgage or another qualifying security, its position can differ substantially from that of an ordinary unsecured creditor.

The value of the security and any unsecured deficiency should be identified carefully.

Under the voting rules, secured claims are taken into account for the portion remaining unsecured following valuation of the collateral.

Check Bank Guarantees

A foreign supplier may possess a bank guarantee issued in connection with the Turkish buyer’s payment obligations.

The guarantee should be reviewed separately from the concordat claim because the guarantor’s obligation, wording of the instrument, expiry date and demand requirements can materially affect recovery.

Do not allow a guarantee to expire while focusing only on the concordat proceeding.

Check Parent Company and Shareholder Guarantees

International supply agreements sometimes include guarantees from shareholders, group companies or directors.

Determine whether those obligations can be pursued independently and whether the guarantor itself is protected by any separate proceeding.

Letters of Credit Should Be Reviewed Separately

If payment was structured through a documentary credit, analyze the issuing or confirming bank’s obligations independently from the buyer’s concordat.

The contractual payment mechanism may materially change the creditor’s risk position.

Retention of Title Requires Careful Review

Some foreign supply agreements contain retention-of-title provisions.

Whether such a clause provides effective proprietary protection in Turkey depends on the transaction, goods, formalities and applicable law. The creditor should not assume that a clause valid under foreign law automatically allows immediate recovery of goods located in Turkey.

Identify Goods That Have Not Yet Been Delivered

If goods are still in production, in transit or awaiting customs clearance, determine whether the seller is legally required to continue performance.

Do not automatically ship additional goods to a buyer already under court protection.

Review Incoterms and Delivery Status

Determine when delivery, risk and ownership were intended to pass under the relevant contractual framework.

This can affect whether goods still in transit can be stopped, redirected or otherwise protected.

New Transactions During the Moratorium Require Separate Analysis

Debts incurred during the moratorium with the commissioner’s permission can receive different treatment from ordinary pre-concordat claims.

Article 308/c provides special treatment for obligations entered into with commissioner approval during the moratorium, including qualifying obligations arising from continuing contractual relationships.

A foreign supplier considering continued deliveries should therefore negotiate the legal status of new receivables before shipping.

Do Not Continue Supplying on the Old Credit Terms

If the Turkish buyer requests new deliveries during concordat, reassess payment security.

Possible commercial structures may include advance payment, qualifying bank security, letter of credit or another appropriately structured payment mechanism.

New exposure should not simply be added to the old unpaid balance.

The Debtor May Dispute the Foreign Creditor’s Claim

The Turkish buyer may dispute all or part of the declared claim.

The creditor should obtain the reason for the objection and immediately organize the contractual, accounting and delivery evidence supporting the disputed amount.

Disputed Claims Do Not Simply Disappear

The court can determine whether disputed claims are taken into account for voting purposes and to what extent, without finally resolving the underlying substantive claim.

The creditor should distinguish participation in the concordat vote from final adjudication of the debt.

A Separate Lawsuit May Be Necessary

Article 308/b provides an important post-confirmation mechanism for disputed creditors.

Creditors whose claims have been disputed may bring an action within one month from publication of the confirmation decision. The court may also order the debtor to deposit the concordat distribution corresponding to the disputed claim into a designated bank pending resolution.

This deadline should be placed on the creditor’s calendar immediately.

Participate in the Creditors’ Meeting

Claim registration is not the end of the process.

Foreign creditors should monitor the commissioner’s report and participate in the voting process where entitled.

Failure to participate can leave the restructuring terms to other creditors even though the foreign supplier has substantial economic exposure.

Understand the Voting Majorities

Under Article 302, a concordat project can satisfy the statutory voting requirement through either of two alternative majorities: more than half of the registered creditors representing more than half of the registered claims, or more than one quarter of the registered creditors representing at least two thirds of the registered claims.

The size of a foreign supplier’s claim can therefore make its vote commercially important.

Only Affected Creditors Vote

Not every claim is treated identically for voting purposes.

The legal classification of the creditor’s claim should therefore be determined before assuming that the entire amount carries voting rights.

Analyze the Concordat Proposal Economically

Do not decide how to vote solely by looking at the percentage repayment.

Review:

payment percentage; maturity; grace period; interest; currency treatment; security; expected cash flow; debtor’s projected revenue; asset values; liquidation comparison; related-party claims; and assumptions underlying the restructuring.

A nominal 100% payment proposal stretched over several years may have a very different economic value from immediate payment.

Compare Concordat Recovery With Bankruptcy Recovery

Court confirmation requires, among other conditions, analysis of whether the proposed recovery satisfies the statutory confirmation framework, including comparison with what creditors could receive in bankruptcy in relevant circumstances. Current 2026 court practice continues to examine this comparison during confirmation.

Foreign creditors should conduct their own recovery analysis where the exposure is material.

Challenge Unrealistic Projections

If the buyer’s restructuring depends on unrealistic sales growth, asset sales or financing, the creditor should document its concerns.

Questions should be based on financial evidence rather than a general assertion that the debtor cannot be trusted.

Examine Related-Party Claims

Significant claims held by shareholders, group companies or connected persons can affect the economic picture.

Determine how those claims are classified and treated in the voting calculation.

Attend the Confirmation Stage When Necessary

After the commissioner submits the relevant report, the court examines confirmation.

Current court announcements show that creditors objecting to confirmation may be required to submit their objections in writing before the hearing in order to participate effectively at the confirmation stage.

Monitor the particular court’s announcement carefully.

Can a Foreign Creditor Appeal the Confirmation Decision?

Article 308/a provides appellate mechanisms concerning concordat decisions. Other objecting creditors may appeal within ten days from publication of the confirmation decision, while further review before the Court of Cassation is also subject to a ten-day period under the statutory framework.

Because these periods are short, the litigation strategy should be prepared before confirmation.

What Happens When Concordat Becomes Binding?

Article 308/c provides that the concordat becomes binding upon confirmation unless the confirmed project specifies that it will become binding upon finalization of the judgment.

Once binding, it generally applies to claims arising before the concordat request and certain claims arising during the moratorium without commissioner approval, subject to statutory exceptions.

Does Voting Against the Plan Protect the Creditor From It?

Not necessarily.

A confirmed concordat can bind creditors within its statutory scope even if an individual creditor voted against the proposal.

This is why procedural participation before confirmation matters.

What If the Turkish Buyer Does Not Pay Under the Confirmed Plan?

Article 308/e provides a remedy where the debtor fails to perform toward a creditor according to the confirmed project. The affected creditor can seek partial rescission of the concordat in relation to itself while preserving rights acquired under the concordat framework.

What If the Concordat Was Obtained Through Bad Faith?

Article 308/f permits a creditor to seek complete rescission where the concordat has been tainted by bad faith.

Evidence of deliberate asset concealment or materially false information should therefore be preserved carefully.

Foreign Creditors Should Review Governing Law and Arbitration Clauses

The underlying supply contract may be governed by foreign law or contain an arbitration clause.

However, the Turkish concordat proceeding creates separate insolvency and enforcement questions that cannot simply be resolved by referring to the contractual governing-law clause.

Contract and insolvency strategy should be coordinated.

Existing Arbitration Should Be Reviewed

If arbitration concerning the debt is already pending, determine how the Turkish concordat affects enforcement and participation in the restructuring.

Obtaining an award and collecting against the Turkish debtor are separate questions.

Foreign Judgments and Awards Require Strategic Planning

A foreign creditor may already possess a judgment or arbitral award against the Turkish buyer.

Its status, recognition or enforcement in Turkey and the effects of the concordat moratorium should be analyzed together.

Preserve Set-Off Rights

If the foreign creditor also owes money to the Turkish buyer, examine whether set-off may be available and under what conditions.

Do not make payments to the debtor without reviewing the possibility that valid set-off rights could be lost or complicated.

Stop Automatic Credit Exposure

Freeze or review open credit limits, automatic shipment arrangements and recurring purchase orders immediately after learning of the concordat.

Internal sales teams should be informed so that commercial operations do not unintentionally increase exposure.

Review Credit Insurance

If the foreign supplier has trade credit insurance, notify the insurer immediately.

Policies frequently contain strict notification, debt-collection and consent requirements following insolvency or restructuring events.

Review Cargo and Documentary Control

Where goods are still in transit, identify who holds the original transport documents and whether control of delivery can lawfully be maintained.

Act before goods are released to the financially distressed buyer.

Build a Complete Creditor File

The foreign creditor should maintain a consolidated file containing:

the supply agreement; amendments; purchase orders; invoices; delivery documents; account statements; correspondence; payment acknowledgments; securities; guarantees; customs records; litigation documents; claim-registration papers; commissioner communications; voting documents; and court announcements.

This file should be maintained throughout the proceeding.

Immediate Action Plan for Foreign Creditors

When a Turkish buyer files for concordat, a foreign creditor should immediately identify the court proceeding and commissioners, stop uncontrolled new credit exposure, verify the total outstanding debt, monitor announcements, prepare the Article 299 claim registration, preserve foreign-currency calculations and supporting evidence, review security and guarantees, analyze goods still in transit, monitor disputed-claim issues, participate in voting, evaluate the restructuring economically, prepare objections before confirmation where necessary and calendar all litigation and appellate deadlines.

Frequently Asked Questions

Can a foreign company register a claim in a Turkish concordat?

Yes. The foreign location of the creditor does not by itself prevent participation. The creditor should comply with the Turkish concordat procedure and evidentiary requirements.

How long does a creditor have to register its claim?

Article 299 provides for a 15-day claim-notification period following the relevant announcement. Recent 2026 notices continue to apply this framework.

What happens if the foreign creditor misses the claim-registration period?

If the claim is not recorded in the debtor’s balance sheet, failure to register can prevent the creditor from participating in negotiations.

Can the creditor continue enforcement during the moratorium?

Ordinary enforcement is generally restricted during the moratorium, subject to statutory exceptions. Existing enforcement proceedings are generally stayed.

Can a foreign supplier continue delivering goods?

Potentially, but new deliveries should be structured carefully. The treatment of obligations entered into with commissioner approval during the moratorium can differ materially from ordinary pre-concordat claims.

What if the Turkish buyer disputes the claim?

The creditor should preserve its evidence and monitor both voting treatment and subsequent litigation rights. Under Article 308/b, disputed creditors have a one-month period following publication of confirmation to bring the specified action.

Can a creditor vote against the concordat?

Where entitled to vote, yes. However, if the project obtains the statutory majorities and is confirmed, the creditor may still become bound within the statutory scope.

What if the creditor has a bank guarantee?

The guarantee should be analyzed independently. Its wording, expiry date, demand requirements and relationship with the underlying debt can be critical.

Can the foreign creditor appeal confirmation?

The Enforcement and Bankruptcy Law provides appellate rights subject to short statutory periods, including a ten-day period applicable to objecting creditors calculated from publication of the confirmation decision.

What is the most important step for a foreign creditor?

Do not treat the concordat as an ordinary late-payment problem. Immediately register and document the claim, stop uncontrolled additional credit exposure, protect security and guarantee rights, participate in the restructuring process and calendar every Turkish procedural deadline.

Client-Focused Legal Support for Foreign Creditors in Turkish Concordat Proceedings

A Turkish buyer’s concordat can place substantial foreign receivables at risk, particularly where the creditor has foreign-currency invoices, goods in transit, bank guarantees, disputed accounts, secured claims or significant ongoing supply obligations.

Fırat Fesih Kaya Law Office assists foreign manufacturers, exporters, international suppliers and corporate creditors seeking to protect receivables in Turkish concordat and enforcement proceedings. Lawyer Fırat Fesih Kaya provides legal assistance with claim registration, commissioner proceedings, disputed receivables, creditor voting, confirmation objections, enforcement strategy, guarantees, foreign judgments and contractual recovery claims.

Phone:
+90 312 434 22 22

Mobile:
+90 532 769 22 22

Email:
info@firatfesihkaya.av.tr

Address:
Mevlana Boulevard No:221, Yıldırım Tower, Office No:148
06520 Balgat, Çankaya, Ankara, Turkey