The queue for concordat is getting longer every day

Many businesses, from small to large, are struggling to survive the economic downturn and cash flow problems. Difficulties in accessing financing, increasing costs and decreasing demand are leading companies towards the door of bankruptcy . In the January-June period, 2,776 companies applied for bankruptcy. The number of cases for which the courts have issued temporary bankruptcy decisions has reached 1,259 as of June. Bankruptcy decisions have been issued for 96 companies.

According to data from Konkordatotakip.com, June was recorded as the month with the highest number of applications for composition since the beginning of the year. Applications for composition increased by 162.6 percent compared to the same month last year, with a total of 541 new files opened. Temporary respite decisions were given for 292 of these files. Definitive respite decisions were given for 132, and rejection of composition decisions were given for 91. Bankruptcy decisions were given for 19 companies, and approval decisions were given for 7 files.

CONSTRUCTION AND TEXTILE COMPETE

While the number of temporary respite decisions, which is the first stage of the concordat, was 1384 in 2018 when the bankruptcy postponement was lifted, this number reached 519 in 2023 and 1723 in 2024. A new record is expected at the end of the year in temporary respite decisions, which were 1259 in the first six months of 2025.

The sectors that have requested bankruptcy protection are primarily construction, textile and metal industry companies. Since 2018, there have been 475 construction companies, 298 textile companies and 105 metal product manufacturing companies that have taken definitive respite decisions. There has also been an increase in bankruptcy protection applications in companies from the food, furniture and hotel sectors.

REFLECTED IN BONUS CHECKS

In addition, the tendency to default on debts has also led to an explosion in bounced checks and protested promissory notes. According to the data of the Risk Center, 108,161 checks bounced when presented to banks in the January-May period of this year. In this period, when the number of bounced checks increased by 11.8 percent, the monetary amount of these checks increased by 42.5 percent to 81.8 billion liras. In the five months in question, those who bounced checks at different times and more than once were counted as one person, and the number of bounced checks was calculated as 16,442 people.

During the same period, the number of bills protested by banks for not being paid on time increased by 29.9 percent compared to the previous year, reaching 113,690, while the monetary amount of these bills increased by 136 percent, reaching 33.1 billion lira.