In today’s volatile economic and political landscape, businesses face unpredictable liquidity challenges due to fluctuating market conditions, sector-specific changes, and intense competition. These liquidity and cash flow management issues can hinder even well-established companies—those with significant long-term value creation potential—from meeting their financial obligations to banks and creditors. As a result, they may experience unwarranted creditworthiness issues, affecting their long-term sustainability.

When companies default on loan repayments, creditors may issue legal notices or demand immediate payments. Renegotiating and restructuring outstanding debts into a manageable repayment plan—one that aligns with liquidity capabilities and convinces creditors—is a complex and delicate process. It requires financial expertise, in-depth knowledge of cash flow management, and strategic communication with financial institutions.

At NT Finance Partners, our Financial Restructuring Consultancy Services are provided by a team of seasoned financial experts and former senior bank executives. We offer practical solutions to businesses experiencing difficulties in servicing their loans and financial obligations.

Our Approach to Financial Restructuring

At NT Finance Partners, we believe that a company’s financial restructuring process is as critical as its long-term survival and renewal. To ensure a successful restructuring, we focus on three key areas:

• Accurately assessing the company’s financial position and repayment capacity

• Implementing timely and realistic liquidity management strategies

• Effectively presenting cash flow projections to creditors and negotiating optimal repayment terms

However, true financial restructuring is a highly complex and challenging process. Our goal is to develop the most suitable restructuring strategies for companies and their stakeholders, ensuring a smooth financial recovery.

Our Role in the Financial Restructuring Process

In line with the Financial Restructuring Framework Agreement established by the Banks Association of Turkey (TBB), we offer customized financial restructuring solutions. Our services include:

• Assessing borrower eligibility for financial restructuring, ensuring their ability to regain repayment capacity

• Supporting businesses in renegotiating their debts with banks and creditors

• Assisting companies that intend to meet their debt obligations but struggle due to temporary liquidity shortages

• Facilitating debt restructuring for businesses that contribute to economic growth but face short-term financial challenges

Our process ensures that financially distressed companies can continue their operations, fulfill their financial obligations, and maintain their contributions to the economy.

Legal Framework & Eligibility Criteria

Under the Banking Law No. 5411 (Temporary Article 32), banks, leasing firms, factoring companies, and financing companies may restructure credit debts of businesses under the Financial Restructuring Framework Agreement (FYY).

• Large-scale companies with outstanding loans of 25 million TL or more can benefit from financial restructuring under this agreement.

• Small-scale companies with loans below 25 million TL can also apply after obtaining approval.

• Companies that have already been declared bankrupt cannot benefit from financial restructuring. However, businesses that are under legal follow-up but have no more than 25% of their total debt concentrated within one or multiple creditors may still qualify.

How NT Finance Partners Supports Your Business

Our team provides full guidance and execution support throughout the financial restructuring process, which involves:

• Filing an application with one of the top three creditors, along with the required documentation and commitment letters.

• Ensuring that the Lead Creditor Bank ("Application Bank") communicates with all creditor institutions to obtain details of outstanding debts and collateral positions.

• Initiating the "Standstill Period" once the restructuring application is submitted, preventing new legal actions or enforcement proceedings while negotiations are underway.

• Establishing a Creditors' Consortium ("AKK") to oversee the restructuring process, with a designated Lead Bank managing the discussions and negotiations.

• Assisting in restructuring negotiations, finalizing agreements, and monitoring the implementation of the financial restructuring plan.

Key Financial Restructuring Solutions

Upon completion of the process, the company and its creditors enter into a formal Financial Restructuring Agreement, which may include one or more of the following restructuring strategies:

• Extension of debt maturities

• Renewal of existing credit facilities

• Issuance of additional financing to sustain business operations

• Partial or full waiver of outstanding debt obligations

• Conversion of debt into equity

• Asset-backed restructuring options, such as transferring receivables, collateralizing liabilities, or liquidating non-core assets

At NT Finance Partners, we leverage our financial expertise to guide businesses through these challenging restructuring processes, ensuring they regain financial stability, rebuild their creditworthiness, and secure a sustainable future.