Over 3000 Turkish companies apply for bankruptcy protection
The number of Turkey companies who applied for bankruptcy protection due to market volatility amid the country’s financial crisis has exceeded 3000, according to Sözcü newspaper columnist Nedim Türkmen.
A shortage of cash flow in the market and increasing interest rates hitting unprecedented levels due to the excessive depreciation of the Turkish lira, which has lost 40 percent of its value since the beginning of the year, are pushing up the borrowing costs leading to an increasing number of companies experiencing problems in their short term payments.
"The companies that are applying for bankruptcy protection are met with surprise by both people in the world of business and customers on the streets,’’ Türkmen wrote. "For example, people are having a hard time understanding how a restaurant who is among the top in Turkey comes to this point.’’
Türkmen stressed that the number of applications for bankruptcy protection which have been responded to has surpassed 3000 while the number of companies awaiting a response on their application and preparing to apply is between 5000-7000.
Last month, two Turkish aluminium companies, Teknik Alüminyum and Burak Alüminyum, both among Turkey's top 100 exporters, received bankruptcy protection, in addition to the country’s two top shoes and accessories brands Hotiç and Yeşil Kundura.