Foreign Creditors in Turkish Concordat Proceedings

yazarı lawyerfbc

açık Ocak 15, 2026

1. Why “procedural discipline” decides the outcome for foreign creditors

In Turkey, concordat (konkordato) is a court-supervised restructuring mechanism that can bind creditors under a confirmed plan. For a foreign creditor, the biggest mistake is to treat concordat as a purely substantive debt issue. In practice, concordat is a timeline-driven process: rights exist, but they are activated only if the creditor follows the correct steps, uses the correct channels, and meets strict statutory deadlines.

Foreign creditors are particularly exposed to procedural risk because:

public announcements trigger deadlines even if the creditor learns of them late,
documents are often in a foreign language and must be presented in a format understandable to the commissioner and court,
currency/interest calculations can materially change voting influence,
secured/privileged classifications can reduce or eliminate voting power, and
disputed claims may be counted differently in voting and later distributions unless the creditor litigates in time.

This article gives foreign creditors a practical roadmap to:

register claims (alacak kaydı / claim filing),
respond to objections and manage disputed claims, and
protect ranking list (sıra cetveli) rights when enforcement distribution or bankruptcy becomes relevant.

2. Turkish concordat in one page: actors, phases, and where foreign creditors fit

2.1 Key actors

Commercial Court: grants temporary/final respite (mühlet), supervises the process, and decides confirmation (tasdik).
Concordat Commissioner (Komiser): collects claims, examines the debtor’s records, organizes the creditor meeting, and reports to the court.
Creditor Committee (if formed): supports oversight, may influence negotiation dynamics.
Debtor: proposes the plan, answers claim assertions, negotiates, and must comply with the confirmed plan.

2.2 Typical phases (simplified timeline)

Temporary respite (geçici mühlet) → protection begins, commissioner appointed.
Final respite (kesin mühlet) → plan drafting and claim collection/verification.
Call to creditors → claim registration window opens.
Commissioner review and debtor responses → claims are accepted, partially accepted, or disputed.
Creditor meeting and vote → acceptance thresholds are calculated.
Court confirmation → plan becomes binding if confirmed.
Post-confirmation litigation for disputed claims → foreign creditor may need to sue to finalize participation.

For foreign creditors, Phase 3–7 is where rights are won or lost.

3. Claim registration (alacak kaydı): the first critical deadline and what it really means

3.1 The filing deadline: why foreign creditors must treat it as “immediate action”

Turkish concordat practice uses public announcements to start the claim filing period. The filing window is short (commonly treated as 15 days from announcement). Waiting for international mail or learning through informal channels is risky.

Practical rule: the moment the creditor becomes aware of a concordat call, it should file immediately—then refine the filing later if necessary. A timely filing with core evidence is usually better than a perfect filing submitted late.

3.2 Where to file

Claims are filed with the commissioner/commissioner board in the manner and address indicated in the announcement and court file. Foreign creditors should not assume that sending an email to the debtor or its counsel qualifies. Filing must be directed to the commissioner and must be traceable.

3.3 Minimum content of a foreign creditor claim filing (best-practice format)

A properly structured claim notification should include:

A) Creditor identity and authority

Legal name, registration number, country of incorporation
Address, contact details
Authorized signatory evidence
Power of attorney for Turkish counsel (recommended)

B) Claim description

Legal basis: contract, invoices, delivery/acceptance records, judgment, arbitral award, guarantee, tort, unjust enrichment, etc.
Principal amount
Currency
Interest basis (contractual, statutory, default interest, penalty interest)
Maturity date(s) and relevant timeline of performance

C) Security and priority

Whether the claim is secured (pledge, mortgage, assignment of receivables, bank guarantee, retention of title, etc.)
Collateral details and supporting instruments
Any asserted privilege/priority under Turkish ranking rules (if applicable)

D) Evidence package

Core documents proving existence, amount, and maturity
Payment history, reconciliation statements, correspondence
Dispute history (if any)

E) Structured calculation sheet

Breakdown of principal + interest + costs
FX conversion assumptions (if relevant)
A clear “as of” date

3.4 Translation and authentication: how to avoid being labeled “unclear” or “disputed”

Foreign creditors often lose credibility not because the claim is weak, but because the presentation is hard to verify.

Recommended approach:

Provide Turkish translations of key documents (at least the operative clauses, invoices, acceptance, payment statements).
If documents need authentication (apostille/legalization), prepare them early—yet do not delay filing solely for this. File first, authenticate in parallel.

3.5 Special categories: what to do with non-standard claims

a) Contingent claims (e.g., guarantee exposure, indemnities):
Describe triggering conditions and estimate exposure. Provide the contract section and a reasoned methodology.

b) Unliquidated damages (e.g., defective performance):
File with a valuation basis—expert estimate, contractual formulas, or a pending litigation status summary.

c) Set-off situations:
Anticipate that the debtor may assert set-off. Present your position (why set-off is unavailable, unmatured, disputed, or not mutual).

4. What happens after filing: debtor response, commissioner review, and classification

4.1 The debtor will be invited to state its position

After claims are filed, the commissioner typically seeks the debtor’s comments: accepted, partially accepted, or disputed. This is where foreign creditors must be proactive: a silent file can turn into a “contested claim” without the creditor noticing until the meeting stage.

4.2 The commissioner reviews books and records (and the risk for foreign creditors)

The commissioner compares filed claims against the debtor’s accounting and documentation. Foreign creditors should not assume the debtor’s records are accurate or complete, especially in cross-border trade where invoices, acceptance, and delivery documentation may sit outside the debtor’s ledger.

Practical tactic: file a short “account reconciliation memorandum” with numbered exhibits so the commissioner can quickly follow the logic.

4.3 Claim status outcomes and what each status implies

1) Accepted claim:

Generally participates in voting and plan distributions (subject to classification rules).

2) Partially accepted:

The creditor must decide whether to challenge the reduction (often impacts voting power).

3) Disputed/contested (çekişmeli) claim:

Participation in voting thresholds may depend on court assessment.
Post-confirmation, a dedicated lawsuit may be necessary for final recognition in the plan.

4) Secured classification:

Only the unsecured remainder typically influences voting. Over-collateralization can reduce voting leverage.

5) Privileged classification:

Certain privileged categories may be treated differently in voting and plan scope.

5. Objections and disputes inside concordat: how foreign creditors should structure their response

5.1 Typical debtor objections against foreign creditors

Debtors often challenge foreign creditor claims using predictable arguments:

invoices not accepted / goods not delivered,
service not completed / milestones unmet,
contract termination or rescission,
set-off against counterclaims,
limitation period defenses,
signature authority defects,
arbitration/jurisdiction clauses misused as “no debt exists” arguments,
FX/interest calculation disputes.

Foreign creditors should answer disputes in a structured way:

establish contract validity and authority,
prove performance and acceptance,
confirm maturity and default,
rebut set-off by mutuality/maturity/dispute analysis,
provide a clean calculation with exhibits.

5.2 Creditor objections: what can the foreign creditor challenge?

A foreign creditor may need to challenge:

the recorded amount,
the currency conversion treatment,
the interest start date or rate,
secured/unsecured allocation,
priority status (if relevant),
inclusion/exclusion from the voting pool,
classification as “related party” (rare for foreigners but possible in group structures),
misidentification (wrong creditor entity, wrong assignment chain).

5.3 “Disputed claim counting” for voting: the overlooked lever

When a claim is contested, it may not automatically carry full voting weight. In practice, the court may determine whether and to what extent a contested claim is included for voting thresholds. This is not a final merits decision; it is a functional decision to allow the process to compute acceptance thresholds.

Foreign creditor strategy:

Seek a court determination that the claim should be counted (fully or partially) based on strong prima facie evidence.
Do this early enough to affect the meeting/vote dynamics.

5.4 Evidence tactics that work in Turkish concordat practice

Foreign creditors should aim for “fast verifiability”:

a one-page claim summary,
a numbered exhibit list,
translated key clauses,
delivery and acceptance proof (CMR/Bill of Lading, warehouse receipts, acceptance certificates),
payment trail (SWIFT, bank statements),
debtor acknowledgment emails/letters,
reconciliation statements signed or not objected to.

6. Creditor meeting and voting: protecting influence despite secured or disputed status

6.1 The inspection period before the meeting

Before the meeting, creditors usually get a short period to inspect documents. For foreign creditors, this is where Turkish counsel is invaluable: inspection reveals how the claim is recorded and whether it is marked disputed, reduced, or reclassified.

6.2 Voting power and why foreign creditors often miscalculate it

Key practical points:

Only creditors affected by the plan vote.
Secured creditors often vote only with the unsecured portion.
Some privileged claims may not influence the acceptance thresholds in the same way as ordinary claims.
Disputed claims may require court treatment to be included.

6.3 Negotiation posture: when to negotiate vs. when to litigate

Foreign creditors should decide early whether their objective is:

maximize recovery under the plan,
preserve enforcement leverage outside the plan (if possible),
push for a better plan by voting power,
prepare for post-confirmation litigation if disputed.

A common “balanced” approach:

negotiate plan treatment while simultaneously preparing the disputed-claim case file, so deadlines are not missed.

7. Confirmation stage: objecting to confirmation and protecting post-confirmation remedies

7.1 Confirmation is not the end for foreign creditors

If the plan is confirmed, it becomes binding within its scope. Foreign creditors who ignored the process may find their enforcement options narrowed, attachments weakened, or payment schedules imposed.

7.2 Post-confirmation lawsuit for disputed claims: the second hard deadline

If a foreign creditor’s claim is disputed, Turkish concordat practice provides a post-confirmation window to sue so that the claim can be definitively recognized for plan participation. Missing this window can severely reduce practical recovery—especially if the plan creates a reserve/deposit mechanism for disputed claims.

Practical instruction: the day confirmation is announced, start the internal clock and prepare filing immediately.

7.3 Using foreign judgments and arbitral awards inside the disputed-claim strategy

Foreign creditors often rely on:

foreign court judgments,
arbitral awards,
settlement agreements.

In Turkey, these instruments can be powerful, but their procedural use depends on:

recognition/enforcement pathways (especially for foreign judgments),
arbitral award enforcement practice under international conventions and Turkish rules,
whether the debtor argues that the plan still governs timing and scope.

Best practice: treat the foreign judgment/award as a central exhibit, but still present the underlying commercial documentation to avoid “formal” challenges.

8. Enforcement and attachment effects: why a concordat can change the battlefield

Foreign creditors sometimes initiate enforcement proceedings in Turkey before concordat. Once concordat protection and later binding effects apply, enforcement can be restricted in various ways, and attachments may lose practical value if not converted to cash at the right time.

Operational takeaway: reassess enforcement strategy immediately after temporary respite is granted:

secured assets: prioritize collateral rights and valuation disputes,
unsecured assets: expect stronger restrictions,
pending sale/distribution: be ready for ranking list issues.

9. Ranking list (sıra cetveli) rights: when they matter in a concordat-focused dispute

9.1 Why “sıra cetveli” appears in concordat practice

Even though concordat is a restructuring (not liquidation), ranking lists become relevant when:

enforcement sales proceed and proceeds must be distributed among multiple creditors,
concordat fails and bankruptcy is opened,
parallel enforcement continues within permitted boundaries,
collateral enforcement produces distributable proceeds.

Therefore, a foreign creditor must understand ranking list rights as a contingency protection tool.

10. Sıra cetveli in enforcement distribution: how it works and how to object

10.1 When the enforcement office prepares a ranking list

If sale proceeds are insufficient for all, the enforcement office prepares a distribution order placing creditors into ranks (and within ranks, by relevant dates and rules). The creditor’s classification (secured/privileged/ordinary) becomes decisive.

10.2 Two routes: lawsuit vs. enforcement court complaint

In practice, disputes fall into two broad types:

Substantive disputes (existence/amount of another creditor’s claim, sham claims, invalid security): typically litigated as a lawsuit.
Pure ranking disputes (who should be ahead, which rank applies, date issues): often handled as a complaint before the enforcement court.

10.3 The 7-day reaction window: why foreign creditors must pre-position service in Turkey

Ranking list objections in enforcement are time-sensitive. For foreign creditors, service abroad can consume most of the window. The solution is to:

appoint Turkish counsel early,
designate a Turkish service address,
monitor enforcement files proactively.

10.4 What to argue in a ranking list objection (foreign creditor checklist)

Identify the exact error: wrong rank, wrong amount, wrong date, wrong secured/privileged characterization.
Provide documentary proof: mortgage registry extracts, pledge agreements, assignment notices, priority documents.
If challenging another creditor’s claim: show why it is non-existent, inflated, time-barred, or not enforceable.
Request interim measures if distribution is imminent.

11. Sıra cetveli in bankruptcy: protecting claim acceptance and priority

11.1 Bankruptcy ranking list is a different litigation ecosystem

In bankruptcy, the ranking list is tied to bankruptcy estate administration. Objections are typically filed before the commercial court with specialized procedural rules.

11.2 Strategic priorities for foreign creditors in bankruptcy ranking disputes

Ensure the claim is properly admitted to the estate.
Defend secured status with registry-grade evidence.
Challenge competing claims that dilute recovery.
Preserve rights to distributions and avoid missing objection deadlines.

11.3 Evidence discipline: bankruptcy objections require “court-ready” proof

Foreign creditors should prepare:

corporate documents proving creditor identity and authority,
assignment chain evidence (if claim transferred),
translations and authentication,
clean calculation schedules.

12. Cross-border complications that repeatedly cause losses

12.1 Choice of law vs. procedural law

Even if the contract is governed by foreign law, concordat procedure is Turkish. That means:

filing format, deadlines, and channels are Turkish,
evidence must be presented to satisfy Turkish procedural expectations,
foreign law arguments should be supported by expert opinions when necessary.

12.2 Service and address management

Foreign creditors should avoid “address uncertainty” by:

appointing Turkish counsel,
using a Turkish address for service,
ensuring the commissioner and court record correct contact information.

12.3 Currency and interest: treat it as a legal dispute, not accounting

FX conversion date and method can materially change voting and recovery. Provide:

contractual currency clauses,
default and interest clauses,
a reasoned conversion/interest schedule.

12.4 Group companies and related-party allegations

In multinational groups, debtors may argue a foreign creditor is an affiliate or related entity, pushing for exclusion or different treatment. If there is any group connection, clarify the corporate separateness and commercial reality early.

13. Practical playbook: a foreign creditor’s step-by-step checklist

Step 1 — Monitor and verify the concordat call

Identify the court file and commissioner contact details.
Obtain announcement date and compute deadlines conservatively (assume minimal time).

Step 2 — File immediately (even if evidence is still being legalized)

Submit a structured claim notification with core exhibits.
Add a note that certified translations/legalization will follow.

Step 3 — Secure classification: secured, privileged, ordinary

Provide registry extracts and security instruments.
Explain collateral value and unsecured remainder concept.

Step 4 — Detect dispute status before the meeting

Confirm how your claim is recorded.
If marked disputed or reduced, respond in writing with exhibits.

Step 5 — Protect voting influence

Request that the contested claim be counted to an appropriate extent based on prima facie proof.
Coordinate with other creditors if collective negotiation is beneficial.

Step 6 — Post-confirmation: do not miss the disputed-claim lawsuit window

If your claim remains disputed, prepare immediate litigation.
Attach the full claim file, translations, and calculation schedule.

Step 7 — Keep ranking list readiness (enforcement/bankruptcy contingency)

Track enforcement distributions and potential ranking lists.
Pre-position service address and counsel for rapid objections.

14. Common mistakes foreign creditors make (and how to avoid them)

Waiting for postal service abroad → file as soon as you learn of the process.
Submitting only English documents → provide Turkish translations of key parts.
Ignoring classification → secured status can reduce voting; fight valuation and unsecured remainder treatment.
Underestimating FX/interest disputes → provide clean schedules and contractual basis.
Not checking the recorded creditor list → small clerical errors change outcomes.
Missing post-confirmation lawsuit deadline for disputed claims → treat it as “drop everything” urgency.
No contingency plan for ranking list disputes → enforcement/bankruptcy can appear suddenly.

15. Short sample drafts (original templates) for practice use

15.1 Claim registration cover letter (to commissioner)

Subject: Claim Registration – [Debtor Name] / Concordat File [●]

Body (summary):

Creditor identity and authority
Claim basis and short timeline
Amount and currency; interest basis
Security statement and exhibits
Request for confirmation of registration and inspection details

15.2 Response to debtor’s partial acceptance

Core structure:

Identify the reduced items (interest exclusion, FX rate, principal reductions)
Provide contractual/legal basis
Attach exhibit-based proof
Request correction in the recorded creditor list and for voting calculations

15.3 Ranking list objection (enforcement) – outline

Identify ranking list and distribution file
Specify contested portion: rank/amount/date/security
Explain legal and factual grounds
Request suspension of distribution until resolution (where appropriate)
Attach registry extracts and security documents

16. FAQ for foreign creditors

Q1: Can a foreign creditor still participate if it missed claim registration?
Participation becomes significantly harder and often impacts negotiation/voting ability. In practice, late action is always weaker than timely filing.

Q2: Does having a foreign court judgment guarantee acceptance in concordat?
It strengthens the position, but procedural steps and presentation still matter. Recognition/enforcement considerations may arise.

Q3: If the claim is secured, do I still need to file?
Yes. Filing protects classification and ensures the claim is visible and correctly treated.

Q4: Is ranking list (sıra cetveli) always relevant in concordat?
Not always. It becomes critical when enforcement distributions or bankruptcy contexts arise.

17. Suggested internal link structure for your website (SEO)

/turkish-concordat-overview
/foreign-creditor-claim-registration-turkey
/concordat-creditor-meeting-voting-rights
/disputed-claims-lawsuit-after-confirmation
/sira-cetveli-ranking-list-objection-enforcement
/bankruptcy-ranking-list-objection-turkey

18. Conclusion: the foreign creditor’s “three-rights package”

For a foreign creditor, the concordat battlefield is won by controlling three linked rights:

Claim registration right: file fast, file structured, translate key evidence.
Objection/dispute management: protect the claim’s recorded value and voting influence; react to debtor challenges proactively.
Ranking list protection: be prepared for enforcement or bankruptcy distribution scenarios where priority and timely objections decide recovery.

Categories:

Genel