Restructuring, Rehabilitation & Insolvency

In Crisis, Order Matters

When a company falls into financial difficulties, the scope for action narrows with each passing week. What starts as a business decision later becomes a duty — and eventually a question of liability. We provide advice during this phase with regard to both: what is still economically feasible and what is legally required.

The First Weeks

At the beginning, there is no strategy, but rather an assessment. What is the liquidity situation in the coming weeks, not in the annual financial statements? Which payments are contractually due, and which are negotiable? Where are the securities, and to whom do they belong? Only once these questions are answered can a decision be made about whether rehabilitation outside of a procedure is realistic.

Duties of Management

For managing directors and board members, the crisis also poses a personal risk. The law attaches application obligations to insolvency and over-indebtedness with short deadlines, and payments made after this point may need to be reimbursed personally. Additionally, there are duties towards shareholders, banks, and employees.

We clarify early on where your company stands, what needs to be documented, and which payments are still permissible. This clarification is not a formality: it determines whether a corporate crisis becomes a personal one.

Negotiations with Creditors

Banks, suppliers, landlords, and tax authorities pursue different interests and have different means of pressure. An agreement is only effective if it encompasses all essential stakeholders and if it is clear why the proposed path is better for them than the procedure. We prepare these discussions, conduct them, and document the outcome in a way that ensures it remains valid later.

Rehabilitation or Procedure

There are now several paths between free rehabilitation and insolvency — from the restructuring framework outside of the procedure to self-administration. Which one fits depends less on desire and more on the creditor structure, remaining liquidity, and how much time is left. We categorize the options and specify what each path requires in terms of preparation.

Cross-Border Situations

If the company has assets, subsidiaries, or creditors in Turkey, an additional layer is added: Which procedure covers which assets, how do securities operate across borders, and what is to be recognized there? We answer these questions together with the law firms of our partners in Istanbul and Ankara — before decisions are made that cannot be reversed.