252 / 522
Will G.Ç.S. issuance become a milestone in corporate bond
offerings?
Approximately four months after the approval of the CMB of the
sale of 35 million TL bill to 17 qualified investors, G.Ç.S. Metal Çatı
İzolasyon Taahhüt Ticaret ve Sanayi A.Ş. announced that it obtained
from the court a bankruptcy postponement decision
10
. This news has
raised many questions with the market participants as to how the CMB
permitted such issuance, when the issuer was on the verge of bank-
ruptcy. The bonds mature on July 15th. In a scenario of non-payment,
the liability of the CMB will also be under scrutiny.
Conclusion
In reaction to the unsuccessful equity IPO boom in the former
CMB president’s period that resulted in many investors’ loss, the newly
formed CMB promulgated many regulations to the benefit of the
investors, while stringent rules have slowed down the IPOs. We now
see a similar approach in the CMB’s approval on debt issuances and,
in light of the above, one may expect more regulation and even
changes in the law to come with exceptional guarantees and expedited
enforcement procedures for the sake of investors.
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NEWSLETTER 2015
10
For further information regarding this type of decision, please visit:
http://www.erdem-
erdem.com/en/articles/postponement-of-bankruptcy/.