The Regulation on Granting the Debtor the Authority to Sell Pursuant to the Enforcement and Bankruptcy Law (“Regulation”) was published in the Official Gazette dated 28.05.2022 and numbered 31849 and entered into force on the date of publication.

The Regulation covers the procedures regarding the voluntary sale of seized assets by the debtor, as regulated under Article 111/a of the Enforcement and Bankruptcy Law No. 2004 (“Law”) titled “Granting the Debtor the Authority to Sell”, and determines the procedures and principles regarding the implementation of the relevant provision.

The matters regulated under the Regulation are summarized below:

1. Application for Granting the Debtor the Authority to Sell

Pursuant to the Regulation, the debtor may apply to the enforcement office within seven days following the notification of the valuation assessment and request that the debtor be granted the authority to sell the asset.

2. Issuance of the Authorization Document for Voluntary Sale

After the valuation assessment becomes final, the enforcement officer shall suspend compulsory sale procedures and issue an authorization document to the debtor who requests the authority to conduct a voluntary sale of the seized asset.

This authorization document shall grant the debtor a period of 15 days starting from the date of notification of the document in order to complete the voluntary sale process.

3. Information and Obligations Included in the Authorization Document

The following matters included in the authorization document issued to the debtor for the voluntary sale of the seized asset are considered significant:

• The debtor must notify the enforcement office within the granted 15-day period of:

  • the name and surname of the agreed purchaser,

  • the Turkish Republic identity number of the purchaser,

  • if the purchaser is a legal entity, its trade name, tax identification number, trade registry number, and MERSIS number,

  • the agreed sale price,

  • and the identifying characteristics of the asset.

• The purchaser must deposit the agreed sale price into the bank account of the enforcement office within the 15-day period granted to the debtor, provided that such amount is not lower than the minimum voluntary sale price determined.

4. Examination of the Voluntary Sale Conditions

If the purchaser deposits the agreed sale price into the enforcement file within the fifteen-day period granted to the debtor, the enforcement officer shall obtain the necessary information and documents.

If the enforcement officer determines that the conditions for voluntary sale have been fulfilled, the file shall immediately be submitted to the court for a decision regarding the approval of the sale and the transfer and delivery of the asset.

5. Court’s Decision Regarding the Voluntary Sale Request

The court shall examine the file without holding a hearing and shall make a final decision on acceptance or rejection of the request within ten days at the latest.

• If the court accepts the request:
  The ownership of the asset shall transfer to the purchaser. The enforcement office shall complete the transfer and delivery procedures.

• If the court rejects the voluntary sale request:
  Within three business days following the submission of the rejection decision to the enforcement office, the sale price shall be returned to the bank account notified by the purchaser.

  In addition, the enforcement officer shall carry out the necessary procedures for the removal of the annotation registered pursuant to Article 7 of the Regulation.

Conclusion

With this Regulation, the procedures and principles regarding the implementation of the provision regulated under the Enforcement and Bankruptcy Law concerning granting the debtor the authority to sell seized assets have been determined.

Submitted for your information and consideration.