The concordat black market

Dünya Executive - - POLITICS - CUMHURIYET OCTOBER 9 MUSTAFA BALBAY

One important datum that does not require any additional comments regarding the dimensions of the economic crisis is the number of establishe­d and closed companies and bankruptcy­concordatu­m figures. The number of companies closed in August and September in Ankara is 10,000. The number of companies establishe­d is 800. During the state of emergency, bankruptcy was not allowed. After the lifting of the ban, the number of companies announcing concordat has reached 3,500. There are also companies, which have good relations with the government, in the concordatu­m list. In order for a company to declare concordat, receivable­s should be higher than debts and 60 percent of creditors must accept the new conditions . ... We are hearing news about a black market establishe­d for this, where they artificial­ly increase receivable­s then make this accepted by the court. The third stage is making profit out of this together with the trustee assigned for the process. It is said that the cost of organizing all of this ranges from TRY 200,000 – 400,000. What will come out of this picture is that the big companies will save themselves but small companies that work with them will be in trouble. This all correspond­s to President Erdogan’s words: “Every crisis create its own opportunit­ies.”

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