Duties of the Concordat Commissioner

Mahmut Barlas / News

Under any debt relationship, it is obvious that the creditor has the upside as to pushing its demands and claims. However, due to the nature of concordat being a collective debt liquidation agreement in order to provide flexibility to the debtor, any claims of the creditors, whom already could not collect their receivables on time, will affect the flexibility goal of the concordat. In order to prevent actions that may affect the success of concordat, there is mandatory court supervision during the entirety of the process. In order for that purpose the court appoints a third party named as the “concordat commissioner”.

Concordat commissioners are segregated into two different titles based on the timing of appointment of which one of them is (A) “interim concordat commissioner” and the other one is (B) “definitive concordat commissioner”.

Interim Concordat Commissioner

According to Article 287/3 of the EBL, the court is required to appoint an interim concordat commissioner or a group of commissioners (no more than three), who are legally designated with the following tasks immediately upon the concordat submission:

1. to review if the preliminary concordat project may success or not,
2. to review whether the financial conditions of the debtor has any realistic chance of turn positively as to the succession of concordat,
3. to review the concordat proposal terms is reflecting the reality and has a realistic chance of succession or not,
4. to make any and all required due diligence over the debtor in order to determine the debtor’s assets/debts
5. to supervise the debtors commercial activities,
6. to provide interim reports to the court in a time and fashion as requested,
7. to submit a “final written report” to the court on his opinion on the succession potential of the concordat based on his findings.

 

Definitive Concordat Commissioner

According to Article 290 of the EBL, the court is required to appoint an definitive concordat commissioner or a group of commissioners (no more than three), who are legally designated with the following tasks immediately upon the start of the definitive respite phase[1]:

1. to contribute to the success of the concordat project,
2. to provide supervision of the debtor’s commercial activities,
3. to provide interim reports to the court in a time and fashion as requested,
4. to inform the creditors on regular intervals on the process of the concordat and the debtor’s up-to-date financial situation,
5. to perform other tasks that may be given by the court,

As can be noted from the duties, the concordat commissioner is playing major role throughout the process, which can last up to 29 months. The qualifications of the concordat commissioner are expected to be legislated under a regulation in the upcoming months.

Yours faithfully,

 

DURUKAN LAW FIRM

           

Av. Mahmut Barlas (mahmutbarlas@durukan.av.tr)

Av. Buse Uygun (merveatayurt@durukan.av.tr)