The effect of concordatum respite on perpetual debt obligations

The effect of concordatum respite on perpetual debt obligations has different consequences from the creditor and debtor perspective. Lawmaker, while trying to protect the superior public interest in the success of concordat, on the other hand, tried to maintain the balance of interests between the partie In this context, regardless of whether the counterparty of the debt relationship is affected by concordat or not, it is regulated that the contracts that are important for the continuation of the activities of the debtor's business cannot be terminated solely due to the application for concordat. Previous agreements in which the debtor's application for concordat is accepted as a justified reason for termination, breach of contract, or a reason that makes the debt payable, and contracts which contain the records in this direction have been voided. However, apart from the debtor's application for concordat, there is no obstacle to termination of the contract due to default or any other reason that renders the debt relationship unbearable. The counterparty of the contract may put forward defense of non-performance or defence of non-performance due to performance weaknes On the other hand, it was regulated that perpetual debt obligations that prevent the success of concordat can be terminated with the permission of the concordat commissioner and the approval of the court, and that the compensation resulting from the termination will be subject to concordat. Service contracts are exempted from this rule. In this way, it is aimed that continuity of the economic existence of the business, continuity of employment, uninterrupted performance of tax liabilities and the creditors will have a higher claim compared to the bankruptcy. In the context of comparative law, although there are similar regulations in the laws of many countries, there are some differences regarding the termination of contract In some legal systems, the debtor himself can terminate the contract in terms of restructurings under a certain amount, while in some legal systems, contracts can be terminated with the approval of the restructuring manager or commissioner, and in some other legal systems with the approval of the court. In the context of the effect of concordat on contracts, the matters regulated in Article 296 of the Execution and Bankruptcy Law are essentially a serious intervention to the material law. The lawmaker has preferred to leave the principle of pacta sunt servanda while limiting the freedom of contract on the one hand. The superior benefit in the success of concordat makes such an intervention in material law acceptable. In this study, the effect of concordat on perpetual debt obligations is examined from the perspective of both the debtor and the creditor, and it is examined together with similar regulations and practices in comparative law.