IS THE NEW TYPE OF CORONAVIRUS EFFECTING ON CONCORDAT PROCESSES? 7 April 2020
Within the scope of the measures taken to prevent the new type of corona virus epidemic, some arrangements have been introduced regarding the procedures arising from the enforcement law. The basis of these regulations is the Article 330 of the Execution and Bankruptcy Law No. 2004 ("EBL"). Pursuant to the relevant article, it was regulated that "In case of an epidemic disease, a common misfortune or a war, enforcement proceedings may be suspended for a certain period of time in a certain part of the country or in favor of certain economic zones."
It is clear that the new type of corona virus, declared by the World Health Organization as an epidemic disease, which has its effect in a wide range of countries or continents around the world, falls within the scope of the specified article. In this context, Presidential Decree Regarding the Suspension of Enforcement and Bankruptcy Proceedings 2279 (“Decree”) taken pursuant to the Article 330 of EBL, was published in the Official Gazette with the number 31076 and dated 22.03.2020 and entered into force on the date of its publication.
In accordance with the decision; within the scope of the measures taken to prevent the spread of Covid-19 epidemic disease, it was decided for all pending enforcement and bankruptcy proceedings carried out throughout the country and interim attachment proceedings to be suspended and new enforcement and bankruptcy proceedings requests to be refused to be taken from 22.03.2020 until 30.04.2020.
Within this scope, whether this Decree, which envisages the execution of enforcement and bankruptcy proceedings throughout the country and the related procedures, will have an impact on the concordat processes or not also comes to the forefront as an issue to be evaluated. The Provisional Article 1 of the Law Amending the Certain Laws (“Law”) which was adopted by the Grand National Assembly of Turkey on 25.03.2020 appears to be the regulation that should be taken as a basis during this evaluation.
In accordance with the Provisional Article 1/1 of the law; the time limits determined in EBL and other laws related to the enforcement proceedings and time limits determined by the judge or the enforcement and bankruptcy offices within this scope, all enforcement and bankruptcy proceedings, except for enforcement proceedings regarding child support receivables, new enforcement and bankruptcy proceedings requests and proceeding regarding the execution of the interim attachment are suspended until 30.4.2020. These time limits will start to run following the day after the suspension period ends
However; in accordance with the Provisional Article 1/3-c of the Law, the results of the concordat time limits envisaged within the scope of EBL and other laws regarding enforcement proceedings in terms of creditor and debtor will continue throughout the period.
In conclusion, although the time limits determined in EBL and other laws related to the enforcement proceedings and time limits determined by the judge or the enforcement and bankruptcy offices within this scope, all enforcement and bankruptcy proceedings, except for enforcement proceedings regarding child support receivables, new enforcement and bankruptcy proceedings requests and proceeding regarding the execution of the interim attachment are suspended until 30.4.2020; the concordat time limits will continue to produce results in terms of creditor and debtor during this period. Within this scope, as for the creditors, the results such as suspension of the previously initiated enforcement proceedings against the debtor and the suspension of the time limits will continue; in terms of the concordat debtor, there will be no change due to the measures taken under the new type of corona virus, and the concordat debtor will continue its operations under the supervision of the concordat commissioner.
