Turkish construction giant Palet files for bankruptcy protection

Palet Construction, the firm responsible for the massive Atatürk hydroelectric dam project in southeast Turkey, has filed for bankruptcy protection, Hürriyet newspaper reported on Tuesday.

The firm, which has completed dozens of high profile projects since it was founded in 1966, said in its filing that it has had difficulty repaying its debts because of delays collecting payments from the projects it is currently working on, which are mostly public works.

The filing seeks to arrange the repayment of Palet’s debt of 105 million lira into nine equal payments over 36 months.

The company has said it has faced troubles due to heightened geopolitical risks and negative effects on its finances caused by the July 2016 coup attempt and the slide in the Turkish lira.

Over 3000 Turkish firms have applied for bankruptcy protection due to Turkey’s serious financial difficulties this year. The firms to apply include several giant construction firms and the country’s largest logistics company, Günaydın Group.