Insolvency and Secured Transactions

Meet the Co-chairs - TAGLAW

Turner, Andrew R.
Conner & Winters, LLP

Williamson, Deborah
Dykema Cox Smith

Insolvency and Secured Transactions

Contact: Fatih Isik


As per the state of emergency declared in the Republic of Turkey on July 20th, 2016, and under Article 4 of Decree Law numbered 669 and dated 31.07.2016, corporations are prohibited from requesting, and the courts are prohibited to rule upon, suspension of bankruptcy. Through this prohibition, yet another opportunity, namely, the concordat, has again come into effect. The meaning of the word ‘concordat’, is a restructuring option for debtors in a poor financial situation, but one that has been rarely applied due to the advantages of suspension of bankruptcy.

Read more: Concordat as an Alternative to Suspension of Bankruptcy

There is a lot of press coverage about the Hanjin bankruptcy, but very little of it provides tangible facts for traders to rely on. One thing we know for sure is Hanjin filed a Chapter 15 bankruptcy in the U.S. What that means is the U.S. bankruptcy court will defer to the Korean bankruptcy court regarding how the case will proceed. The U.S. court will limit its orders to cargo in the U.S. or touching the U.S. Most importantly right now, if you think you have a claim against Hanjin, you need to file that claim in the Korean bankruptcy proceeding, and you must do that between October 11 and 25, 2016. If you miss that claim deadline, you will be out of luck. There are a handful of Korean lawyers representing the interests of cargo owners and other potential claimants in Korea and they should be contacted immediately. Referrals are available.

Beside this one fact, there are a lot of pending questions...

View Full Alert

When a corporation has spent all its equity through the accumulation of losses, thus showing a negative equity in its balance sheet, Section 225 (1) of the Business Enterprise Code (UGB) prescribes that its management must explain in the notes to the annual accounts whether the debt level is high enough to be of relevance under insolvency law. This would be the case if a negative continuity forecast were added to the debts on the books.

Read more: Company in Distress – Remedies and Solution

On 25 April 2016, the Supreme Court of the Republic of Indonesia issued Circular Letter No. 2 of 2016 on Enhancing Efficiency and Transparency of Handling of Bankruptcy and Suspension of Payment Case at the Commercial Court (“Circular Letter 2/2016”). In essence, the salient features of Circular Letter 2/2016 are as follows:

Read more: New Procedure for Appointing the Receiver in Bankruptcy Case

Contact: Budidjaja & Associates Lawyers

The Bank Indonesia (“BI”), recently issued a new regulation regarding Hedging Transaction Based on Sharia Principles, namely Bank Indonesia Regulation No. 18/2/PBI/2016 (“BI Regulation No.18/2016”). This regulation was effectively applied on 26 February 2016. The background of the issuance of this new regulation is to protect the business actor who performed the foreign exchange transaction by using sharia principles from the uncertainty of the recent exchange rates.

Read more: New BI Regulation on Hedging Transaction Based on Sharia Principles