Jul 20 2018

Turkish construction firm applies for bankruptcy protection

Ozensan Taahhut, a large Turkish construction company, applied to the courts for bankruptcy protection, Hurriyet newspaper reported.

A commercial court in Ankara appointed three experts to oversee operations as it delayed the company’s liquidation and gave it a chance to restructure debts, Hurriyet said.

Turkish firms are finding it more expensive to repay loans after the lira slumped more than 20 percent against the dollar this year, extending previous losses. The central bank has raised its benchmark interest rate by 500 basis points since January to 17.75 percent, pushing up loan costs as it sought to defend the lira. The price of construction materials has also risen more than 20 percent annually, government data shows.  

Ozensan, owned by Erdogan Ozen, has carried out construction contracts for state housing authority TOKI, the Justice Ministry, the Health Ministry and various municipalities, Hurriyet reported.