Financial Preparation Before a Concordat Application in Turkey
The financial side of a Turkish concordat application: Article 286 documents, the creditor list, the bankruptcy comparison, the assurance report and the…
OUR SERVICES
Concordat Advisory Financial support for the Turkish concordat (konkordato) process
We analyse the pre-filing financial position and support the financial preparation of the preliminary project with creditor and debt inventories, cash flow projections and repayment scenarios.
What is a concordat?
A concordat (konkordato) is a court-supervised process under Article 285 et seq. of the Turkish Enforcement and Bankruptcy Law (İİK). A debtor who cannot pay debts as they fall due, or is at risk of being unable to do so, may apply to the commercial court of first instance in order to pay its debts through extended terms or reductions, or to avoid a likely bankruptcy. In this process, Prime Numeris prepares the preliminary concordat project and advises the company, building the cash flow projections and repayment plan scenarios.
Who is it for?
- Companies in payment difficulty Businesses unable to pay debts when due, or at risk of being unable to do so.
- Management teams considering a concordat Leaders who want to understand, in financial terms, whether a concordat is a viable option.
- Companies already working with counsel Businesses whose legal preparation is under way and who need support on the financial work.
- Companies preparing for creditor discussions Management teams that want to explain their proposal and repayment plan to creditors with figures.
- Typical sectors Manufacturing, construction, textiles, trading and other highly leveraged businesses.
COMMON CHALLENGES
What companies face at this stage
Rapidly weakening ability to pay
Debts falling due cannot be met from operating cash, and the risk of enforcement grows.
Scattered creditor and debt data
Creditors, their priority status and maturities are not consolidated in one list.
Unknown repayment capacity
It has not been quantified how much the company can pay, and over what period.
Undocumented assumptions
The sales, cost and collection assumptions behind projections are not justified.
Pressure on documents and timing
The financial documents required for the filing must be prepared quickly and consistently.
SCOPE OF SERVICE
What our concordat advisory covers
Pre-filing financial position analysis
Assessing financial statements, the debt structure, the cash position and the sustainability of operations.
Creditor and debt inventory
Listing creditors, amounts, maturities and priority status.
Cash flow projections
Projecting receipts and payments over the proposed repayment period.
Repayment capacity assessment
Analysing how far operating cash can cover debt repayments.
Financial scenarios
Repayment plan scenarios under different sales, cost and collection assumptions.
Financial components of the preliminary project
Supporting the financial calculations on repayment rate, terms and funding sources.
Is this scope right for your business?
In a short initial call we listen to your current situation and expectations, and define the right scope for your business together.
What it brings to your business
A clear financial picture
Management, counsel and other parties in the process rely on the same financial data.
A realistic proposal
The repayment plan is built on the company’s ability to generate cash.
Documented assumptions
The basis of every projection is recorded with its rationale.
A plan tested against scenarios
The repayment plan is also tested under weaker sales and collection scenarios, so creditor discussions are backed by figures.
What you receive
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Financial position assessment
A report summarising the company’s current financial position and the sources of the problem.
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Creditor and debt analyses
Tables showing creditors, amounts, maturities and priority status.
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Cash flow projections
Cash projections for the proposed repayment period.
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Repayment plan scenarios
Scenarios comparing the cash impact of different repayment rates and terms.
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Financial assumptions file
A file documenting the assumptions behind the projections and their rationale.
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Concordat financial work package
A package bringing together the financial work for the preliminary project.
How we work
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01
Confidential initial assessment
The financial position, debt structure and cash position are reviewed in confidence, in coordination with the company’s lawyer.
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02
Inventory and analysis
The creditor and debt inventory and the financial position assessment are prepared.
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03
Projections and scenarios
Cash flow projections, repayment capacity and repayment plan scenarios are built.
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04
Financial work package
The financial components of the preliminary project and the assumptions file are prepared, together with the financial information needed by the audit firm and legal counsel.
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05
Proposal and repayment plan
The chosen repayment plan and the financial rationale for the proposal are finalised with management and legal counsel.
Frequently asked questions
Does Prime Numeris file the concordat application?
No. The application and the legal process are handled by the company’s lawyer. Prime Numeris supports the financial preparation and analysis.
Is the reasonable-assurance report prepared by Prime Numeris?
No. Under Article 286 İİK this report is issued by an independent audit firm authorised by KGK. We support the preparation of the financial work that the auditors and legal counsel need.
Can you guarantee the concordat will be confirmed?
No. Confirmation depends on the court and the creditors, within the conditions set out in the İİK. No adviser can promise the outcome.
How does a concordat differ from financial restructuring?
A concordat is a statutory, court-supervised process under the Turkish Enforcement and Bankruptcy Law. Financial restructuring is the financial preparation for reorganising debt through negotiation with financial institutions; where appropriate, it is handled under our Financial Restructuring service.
Is our information kept confidential?
Yes. Information shared in the initial conversation and during the engagement is kept confidential; confidentiality terms are set out in the engagement letter.
Request a confidential consultation.
An outline of your situation is enough; we will go through the details in the meeting. Everything you share is treated confidentially.
- Complimentary initial consultation
- Needs assessment
- Tailored approach
- advisory@primenumeris.com
- +90 553 012 13 27
- Bursa, Türkiye
Meeting request
Briefly describe your situation and we will contact you to arrange a suitable time to talk.