EMRA decides that license holders cannot pledge their facilities as collateral

The Energy Market Regulatory Authority (EMRA) decided that license holders will not be able to pledge, mortgage or pledge transmission, distribution and storage facilities, except LNG, as collateral, except with the permission of the institution.

EMRA's "Regulation Amending the Natural Gas Market License Regulation" entered into force after being published in the Official Gazette.

Accordingly, license holders will not be able to pledge transmission, distribution and storage facilities, excluding LNG, as collateral, mortgage or pledge them without the permission of the Authority.

Legal entities holding distribution licenses and legal entities holding storage licenses that are not public legal entities may not pledge shares as collateral, assignment of receivables that will have a restrictive effect, assignment of rights under the license, pledge of accounts, pledge of commercial enterprises, assignment of insurance policies, except in cases deemed appropriate by the Authority, mortgage and asset pledge transactions and any transaction that may result in this nature, cannot be a surety, guarantor, creditor, mortgagor in favor of third parties, including its partners, and cannot establish a transaction that would mean suretyship or guarantorship of the debt of a third party under any name as a joint and/or joint debtor.

These provisions will be included in the articles of association of legal entities holding distribution licenses and legal entities holding storage licenses that are not public legal entities.