A Global Guide
Chapter 24: NATIONAL REPORT FOR THE REPUBLIC OF TURKEY
This chapter covers the treatment of executory contracts under Turkish corporate insolvency law and the main factors behind the most recent reforms in the area. The chapter describes the rules applicable in general to executory contracts in formal rescue and liquidation procedures, as well as the special rules applicable to specific contracts. The report observes that under Turkish insolvency law, the treatment of executory contracts is not duly regulated. There are grey areas that have yet to be addressed, such as the lack of clear guidance on the treatment of ipso facto clauses and their effects in restructuring proceedings. The author blames this status quo on the fact that in the last decade reforms on insolvency proceedings have mainly be prompted by suggestions and recommendations from financial institutions. Turkish scholars and practitioners have been less influential in the regulatory reform process. The author therefore recommends some changes that could be implemented to improve the situation.
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