Cross-Border Concordat Law in Türkiye: A Comparative Study of the Extraterritorial Effects of Concordat Approval Decisions

Abstract

Abstract

This article examines the legal implications and transnational recognition of concordat confirmation decisions granted in Türkiye, particularly in the context of international insolvency and restructuring law. The concordat mechanism, designed to enable debtors facing insolvency to restructure their debts and avoid bankruptcy, has significant implications for creditors both domestically and abroad. Although Turkish law renders concordat confirmation decisions binding on all creditors upon issuance, challenges arise in ensuring their recognition and enforcement in foreign jurisdictions. Through an analysis of US and Swiss legal frameworks, this article explores how concordat decisions are approached in the Common Law and Continental legal systems. Under US law, concordat decisions may be recognised through principles of international comity and specific statutes, such as Chapter 15 of the US Bankruptcy Code. Similarly, Swiss law allows for the recognition of foreign insolvency decisions under its Federal Private International Law Act (IPRG), provided certain jurisdictional criteria are met, including the debtor's centre of main interests (COMI). The article also addresses practical and procedural concerns, such as the adequacy of notice to foreign creditors and the feasibility of monitoring announcements about Turkish concordats. This further evaluates the distinction between recognition and enforcement in Turkish law, emphasising the potential recognition of constructive effects rather than definitive judgments for non-contentious matters like concordat confirmation. Temporary and final respite decisions are considered within the broader framework of provisional measures, with an argument for their recognition based on evolving international practices. By critically analysing these issues, the article highlights the need for more robust international procedural regulations to balance the rights of foreign creditors with the objectives of insolvency law and ensure equitable outcomes in cross-border restructuring scenarios.