Recent publications

New Communiqué on Technical Bankruptcy Rules: Flexibility on Fx Liabilities

September 2018

Following the recent economic developments in Turkey and the associated steps taken by the government to avoid certain negative impacts, the Ministry of Commerce has issued a communiqué on 15 September 2018 (the "Communiqué") on the procedures and principles for implementation of Article 376 of the Turkish Commercial Code (Law No. 6102) (the "TCC") regulating compulsory measures to be taken in the event of technical bankruptcy (i.e. balance sheet insolvency). Whilst the Communiqué does not introduce any fundamental novelties to the essence of the technical bankruptcy provisions under the TCC, it intends to provide a clearer guideline in respect of implementation actions. The main takeaway of the Communiqué is the introduction of a new interim calculation method which aims to offset foreign exchange rate losses.