Turkey Sees Record Surge in Corporate Bankruptcies and Debt Restructuring Cases in 2025
According to the Economic Desk of Webangah News Agency, Turkey witnessed an unprecedented rise in corporate bankruptcies and debt restructuring cases in 2025, with Concordatum applications reaching their highest level since the legal framework’s implementation in 2018. The judicial restructuring mechanism, which allows financially distressed companies to renegotiate debts under court supervision, saw 2,817 filings – surpassing the combined total of the previous three years.
The textile and apparel sector accounted for the largest share of restructuring cases, with 234 filings including related footwear, carpet, and leather goods manufacturers. Construction firms ranked second with 134 cases, followed by metal producers (84), fruit/vegetable wholesalers (58), and food manufacturers (56). Courts issued 1,708 final protection orders, a 107% annual increase, while rejected restructuring plans also doubled to 1,460 cases.
Under Turkey’s Concordatum process, companies first receive provisional protection to develop repayment plans. Successful applicants enter final protection phase where court-approved debt restructuring becomes binding for all parties. Despite the surge in filings, only 129 debt plans received full judicial confirmation in 2025 – a 13% annual increase that highlights the stringent approval process.
