CONCORDAT AND RESTRUCTURING IN TURKISH INSOLVENCY LAW (A REVIEW FROM ADR PERSPECTIVE)

Abstract

All modern legal systems present alternatives to the ultimate and undesirable conclusion of bankruptcy liquidation for insolvent debtors. These alternatives provide reorganization and restructuring of unpaid debts, the debtor or even both. Even though there is a wide range of reorganization schemes throughout different legal systems, the essence of these mechanisms are surprisingly similar. They provide temporary protection for debtors who are in financial trouble with the hopes of a possible rescue, while incorporating the creditors in the process. The key point of all these schemes is almost always the concession to be made by both sides. This aspect of reorganization mechanisms is unmistakably reminiscent of amicable resolution of conflicts and alternative dispute resolution, even though the origins of the reorganization mechanisms mostly lack this perspective. In this article, concordat and restructuring in Turkish law and the aforementioned similarity and a possible relation between these institutions and ADR are examined.