Nov 17 2017

Bank Asya declared bankrupt after Gülen spat

A Turkish court ruled for the bankruptcy of Bank Asya, previously the country's biggest Islamic lender, after it became the subject of a feud between President Tayyip Erdoğan and U.S.-based Muslim cleric Fethullah Gülen..

Istanbul's Commercial Court of First Instance reached the decision on Thursday, after a government agency failed to sell it in July, state-run Anadolu agency reported after markets closed on Friday.

Bank Asya owes $250 million in 7.5% sukuk dollar bonds maturing in March 2023, according to data supplied by CBonds.

Turkey's Savings and Deposits Insurance Fund took over the bank in February 2015.

Erdoğan accuses the cleric of masterminding an attempted coup last year and a corruption probe against his government in 2013.