Turkey's leading logistics company goes bankrupt
Turkey's leading logistics company Günaydın Group applied for bankruptcy protection, following several well-established companies like Hotiç and Yeşil Kundura, Diken said on Friday.
The number of Turkish companies applying for bankruptcy protection has grown as the lira dropped more than 40 percent against the dollar this year.
Turkish companies will no longer be required to count foreign-currency losses when assessing whether to file for bankruptcy, according to a legal change introduced at the weekend, a move that could deepen concern about private sector debt, Reuters said on Sept. 17.
The 50-year-old logistics company has 2,200 employees and more than 13 thousand clients.
Erol Günaydın, a board member of the company, said their decision for bankruptcy aims to take precautions to handle the financial situation.
"We will see whether our (bankruptcy) decision is the best way for us and our shareholders that we served to and served by," Günaydın added.
Troubles in the Turkish industry, particularly in the construction sector, could lead to serial bankruptcies unless the government restores confidence and companies gain better access to loans according to specialists.
For years Turkish companies have borrowed in hard currency, drawn by lower interest rates. But a 40 percent decline in the lira - triggered by investor concerns about President Recep Tayyip Erdogan’s growing authoritarianism and the lack of central bank independence - has driven up the cost of servicing that debt, according to Reuters.