Use the Lexology Navigator tool to compare the answers in this article with those from other jurisdictions.
Recognition of foreign proceedings
Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?
Turkey has no special provisions regulating and responding to the needs arising from the complexity of cross-border insolvency proceedings. Instead, any question arising from each cross-border case is handled according to concepts such as reciprocity and territoriality of bankruptcy, and execution or recognition of foreign judgment processes as defined in the International Private and Procedural Law 5718.
Winding up foreign companies
What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?
Only Turkish branches and affiliations of foreign companies are subject to bankruptcy in Turkey.
Centre of main interests
How is the centre of main interests determined in your jurisdiction?
The centre of main interest is determined by the trade registry location of the debtor. However, any creditor may challenge this presumption.
What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?
Although the European Convention on Certain International Aspects of Bankruptcy (due to be referred to as the Istanbul Convention) was signed in 1990, it has not drawn sufficient interest and has not entered into force. In this respect, Turkey has no special provisions regulating cross-border cooperation with foreign courts in insolvency proceedings. The general approach of the courts sees that requests of foreign administrations or courts must go through the enforcement and recognition process.
Click here to view the full article.