The Corona Crisis leads worldwide to critical situations for companies.
In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis.
This part of our series focuses on Turkey:
1) When does a company need to file for insolvency in Turkey?
Under Turkish Law, company’s insolvency is defined as a situation that a company is no longer able to pay its debts in accordance with the Turkish Commercial Code and Execution and Bankruptcy Code. In some cases, the company has to apply to the court to be deemed insolvent, which is called voluntary insolvency. MORE
2) What liability risks exist for the management in Turkey in a corporate crisis?
One of the major risks threatening the managements in Turkey is breaching their contractual obligations towards third parties due to the force majeure situation caused by the Corona crisis. Accordingly, the managements shall immediately take measures to mitigate such risks and if necessary [...]. MORE
3) Is there any state aid available for companies in Turkey due to the Corona crisis?
On 18 March 2020, the Turkish government adopted support package worth 100 Billion Turkish Liras including among other the below measures and aids for businesses in Turkey to mitigate the losses caused by the Corona virus: MORE
4) What immediate measures should a Turkish company take if it is affected by the Corona crisis?
Since companies as employers are responsible for the work health and safety of their employees, the employers shall take certain steps. The right of the employer to regulate the execution of the work, the behavior of the worker, etc., without violating the Law and the employment contract, is called "Management Right". MORE
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