NEWSLETTER-2019-metin

63 COMMERCIAL LAW volume and containing a waiver of a certain amount of their receivables, had been due to the lack of legal grounds under Banking Law No. 5411 (“Banking Law”) for the restructuring procedures. Ultimately, through Provisional Article 32 introduced to the Banking Law through Article 17 of the Law numbered 7186, published in the Official Gazette dated 19 July 2019 and numbered 30836 (bis), explicit and statutory grounds have been granted to the said regulations on restructuring. In this study, the main regulations foreseen under the Banking Law and Regulation in respect of restructuring will be evaluated. Scope of the Regulations on Restructuring Determination of the scope of restructuring under the Regula- tion has significance, particularly as to the determination concerning embezzlement, to be explained below, as well as tax exemptions and incentives. In this respect, pursuant to Provisional Article 32 of the Banking Law, debtors incorporated in Turkey, and which do not fall under the scope of the Banking Law, Insurance Law numbered 5684, Law on Leasing, Factoring and Financing Companies numbered 6361, Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions numbered 6493, and insti- tutions that fall under the scope of Article 35 of Capital Market Law numbered 6362 aside from investment corporations. Under the Restructuring Regulation, it is foreseen that financial restructuring shall be conducted in order to enable the debtor to repay its debts within a reasonable period of time within the provisions, pro- cedures and principles determined by the Banking Law and the Regu- lation. It is further regulated that any other refinancing transaction car- ried out by means of revalidation, installments, collateral, additional facilities, and other refinancing transactions, shall not be considered within the scope of framework agreements, and agreements executed, respectively, under the Regulation pursuant to Provisional Article 32 of the Banking Law. Accordingly, similar to the provisions of the Regulation, Provi- sional Article 32 of the Banking Law stipulates evaluation of the fi- nancial position of debtors and recovery of solvency as a consequence