Newsletter-21

378 NEWSLETTER 2016 Types of the Concordat The official (judicial) concordat can be made in three different ways: the ordinary concordat; the concordat after bankruptcy (in bank- ruptcy); and the concordat through asset abandonment. An ordinary concordat can be made in two ways: As per the first option, the credi- tors may waive some portion of their receivables, and debtor clears his/her debt entirely by paying the agreed amount. As per the second option, the amount remains the same, but the payment is withheld, subject to payment terms. In such case, the payment of the debt can be postponed or split into installments. It is also possible for both types of concordat to be utilized in one case. Apart from the official concordat, the debtor and the creditors may agree upon, and reconstruct, the debts together. In such a case, the government agencies would not get involved in the agreement amongst the parties. This concordat, which is viewed as the private or special concordat, is subject to the terms of the law of obligations. The Ordinary Concordat This concordat is applicable for both debtors who are subject to, or not subject to, the provisions of bankruptcy. The request for con- cordat can be made by either the debtor or the creditor. If the debtor is a person (real person or legal entity) who is subject to bankruptcy, the provisions of concordat may save itself from becoming bankrupt. Therefore, the ordinary concordat may be used in order to prevent probable risks of bankruptcy. The debtor wishing to apply a concordat, or any creditor who can request the bankruptcy of the debtor, is entitled to file a concordat proposal through a petition to the Execution Court. If the conditions are met, the Execution Court can grant a term for concordat up to three months in favor of the debtor, and will appoint one or several concordat commissars. The appointed commissars invite the creditors to discuss the concordat proposal. In these meetings, the creditors will decide either to approve or to reject the proposal of concordat. Upon approval of the creditors, the concordat is submitted to the Commercial Court for approval. The Commercial Court who examines the conditions of