The Effect of the Temporary Respite in The Ordinary Concordat on the Transfer of Future Receivables within the Framework of the Amendments Made to the Law No. 7101

Abstract

Concordat is the legal opportunity that enables the debtors, whose financial situation have deteriorated and are unable to pay all their due debts, to pay their debts under the conditions provided to them in the temporal section stipulated as a result of the acceptance of the proposal by the creditor with a qualified majority as determined in the law and approval of the said proposal by the competent authorities. With the entry into force of the Law No. 7101 on the Enforcement and Bankruptcy Law and Amending Some Laws, significant changes have occurred in Turkish Law in terms of the procedure, function and process of concordat. The provision of the law, in which the consequences of the temporary respite for the creditors are expressed in the concordat, has been revised and rearranged. In the 6th paragraph of Article 294 of the Enforcement and Bankruptcy Law, which was revised by Law No. 7101, the legislator foresees that the agreements regarding the transfer of the future receivables, which were concluded before the concordat respite, shall be null and void in the event that the receivables arise after the respite decision. This rule, which will protect the debtor from the unpredictable consequences of the receivable transfers made before the concordat respite is offered, will also serve for the financial recovery of the debtor. The provision of the law regarding the effect of respite on the transfer of future receivables, which allows the recovery of the deteriorated financial situation of the debtor under more favorable conditions, is important due to being recovery friendly. In our study, after explaining the results of the concordat procedure and the temporary respite for the creditors, which are generally shaped by the Law No. 7101, the effect of the temporary respite on the transfer of future receivables will be tried to be revealed. Thus, by explaining the purpose, conditions and results of the provision of law envisaged in art. 294/ para. 6 of EBL, the new regulation regarding the transfer of future receivables introduced by Law No. 7101 will be evaluated.