Prominent Turkish shoe brand Kemal Tanca has reportedly applied for the concordat to the Istanbul Commercial Court of First Instance.
The Daily Sozcu reported on Friday that the court demanded an expert opinion to examine the financial statement of the brand, in accordance with the law.
Based on the opinion, the court is expected to give related parties three months to apply against the company’s concordat request.
Founded in 1950, Kemal Tanca is the biggest in terms of having chain stores in the shoe sector, with 130 stores.
The concordat is one of the most important indicators that a country faces economic difficulty.
It is the restructuring agreement between the debtor and its creditors, allowing debtors to pay their debts by giving them extra maturity or by preventing possible bankruptcy of the debtor or the debts which are paid to the creditors.
In Turkey, a new concordat regime was introduced in March last year. With the provisions of Law No. 7101, fundamental changes have been made to the procedures and principles of the concordat.
These were previously found in Turkish law which did not have much practice due to commercial reasons and the complexity of the procedure, according to analysts.
Some economy specialists say the new regime is open to manipulations due to the lowered admissibility test for concordat. Companies having any financial difficulties can make concordat application and freeze their liabilities for up to nine months which may make disable the process.
In October last year, Turkish Trade Minister Ruhsar Pekcan said in the parliamentary commission that 356 companies had applied for the concordat. However, critics claimed the minister’s figure was outdated statistics and that the number had in fact reached thousands.