Over the last year there has been an increase in suspended bankruptcies. Those who have taken this path include some very important players in their sectors, such as Rodi, the Kırcı Group, Narpa Narin and Verde Yağ. Experts say that the problem that has brought companies to the brink of collapse is a lack of liquidity.
This situation is expected to continue until the end of the year, leaving executives face to face with deadly risks such as a rising exchange rate and a lack of profits, revenue and liquidity.
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Compared, with last year, there has been a 100 per cent increase in the number of my clients who have been coming to me with requests for bankruptcy. Most demand is coming from the construction sector, its supply industries, and foodstuffs companies.
The major cause of companies reaching this point is liquidity squeezes. They do not have sufficient equity capital. In order to the costs of bank loans they are using factoring companies to discount the checks they have received on their low profits. This is how they are trying to pay their debts to banks.”
These words belong to the lawyer Ali Rıza Yılmaz, who handles suspended bankruptcy cases. The companies that have come to Yılmaz’s attention through their liquidity shortages and which have come to the brink of bankruptcy are not confined to the construction and foodstuffs sectors.
In the last year, there has been a steep rise in the number of companies in diverse sectors seeking suspended bankruptcies, from Rodi to the generator giant the Kırcı Group, the pulses giant Narpa Narin and Verde Yağ.