The ultimate goal of the concordat process is for the debtor to restructure their debts by reaching an agreement with creditors and to continue commercial activities. However, not every concordat application is successful. If the court does not approve the concordat, it can have serious consequences for both the debtor and the creditors.
The consequences of a concordat not being approved include:
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If the debtor is subject to bankruptcy, a bankruptcy decision may be issued.
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Seizure and enforcement procedures can be restarted.
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The temporary protection over assets is removed.
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Proceedings that were paused during the concordat continue from where they left off.
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The debtor’s creditworthiness is significantly damaged.
The most common reasons for non-approval are rejection of the proposed repayment plan by creditors, debtor's misconduct violating good faith principles, insufficient assets, or debts that cannot be serviced under the submitted plan.
At Sayın Hukuk, we ensure that the concordat project is not only legally sound but also financially and commercially sustainable. We work meticulously to ensure that the plan is accepted by both creditors and the court. If the concordat is not approved, we also prepare an alternative roadmap for our clients, guiding them through the next steps with strategic decision-making.