Vendeka Information Technologies, which operates Turkey’s tollbooths, has applied for debt restructuring, the Sözcü newspaper reported on Thursday.
The company is the prime contractor that developed the Rapid Passage System (HGS), a radio-frequency identification (RFID) technology used in 387 tollbooths across the country, covering a highway network of some 2,000 kilometers for around 11 million users.
Vendeka has applied for what’s referred to in Turkish commercial law as “konkordato,” a court-sponsored debt restructuring process for companies on the brink of bankruptcy.
The commercial court overseeing the application has appointed two temporary commissioners to monitor the procedure.
On the other hand, the company’s two owners are on trial over alleged links to the faith-based Gülen movement, which the Turkish government labels a terrorist group.
Konkordato is regulated under the enforcement and bankruptcy section of the Turkish Commercial Code. Declaring that it cannot pay its debts, a firm can apply to a court for konkordato, and the court starts the process of restructuring debt under specific regulations. The firm needs to present a sound payment plan to the court.
In December Commerce Minister Ruhsar Pekcan had announced during a parliamentary session that applications from 846 Turkish companies for konkordato had by then been accepted, while some economy columnists claimed the overall number of applications accepted by courts was around 3,000.