Announcement Regarding the Amendments on the Sale of Trustee’s Property under the Execution and Bankruptcy Law

"Communiqué on Procedures and Principles Regarding the Application of Provisional Article 20 of the Execution and Bankruptcy Law" (the “Communiqué”) has been published in the Offical Gazette dated 18 October 2023 and numbered 32343 by the Ministry of Justice (the “Ministry”).

As per the relevant Communiqué, the procedures and principles  regarding the liquidation of the foreclosed goods in the custody of the trustee under the Enforcement and Bankruptcy Law has been determined.

Within the scope of the Communiqué, the information regarding the goods decided to be liquidated by the enforcement office where the proceedings are carried out will be announced by the liquidation office through portals integrated to the National Judicial Network Information System.

The Communiqué stipulates that the debtor shall firstly take delivery of the goods that are subject to a safeguard measure and that need to be liquidated. If the goods are not received by the debtor, the pledge right holder should be given the opportunity to use his/her rights arising from the pledge.

However, if the goods are not liquidated within the legal period, the liquidation office will start the sale of the goods ex officio.

In addition, it is regulated that if the registered goods are not liquidated, they may be purchased by Makine ve Kimya Endüstrisi A.Ş., which continues its activities in the public interest, in return for scrap value.

However, the Communiqué also stipulates that if the ownership of the goods has not been transferred to anyone even if all the processes have taken place, the goods will be transferred to the Turkish Red Crescent Society free of charge at the last stage within the principles to be applied for the liquidation of the goods.

The relevant Communiqué will enter into force to be effective as of 31 October 2023, and you may find the detailed provisions of the Communiqué in the Official Gazette.