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New bankruptcy protection warning in the steel industry

KOR Group Demir Çelik has announced that it has filed for bankruptcy protection due to financial difficulties and a liquidity crunch.

New bankruptcy protection warning in the steel industry

The company stated that it aims to reach a settlement by entering a restructuring process with its creditors in order to stabilize cash flow and continue operations. The concordat decision is being closely monitored in terms of supply chain security, employment continuity, and overall confidence in the sector.

Although full public details have yet to emerge regarding the specific type and scope of the concordat request, the process is intended to restore short-term liquidity and accelerate debt restructuring. In this context, negotiations are ongoing over a proposed payment schedule and extended maturities for different creditor groups, including suppliers, banks, and government-related claims.

As the company aims for production linked to cash availability, measures are being taken to ensure the progress of ongoing projects and the fulfillment of current orders. Within this framework, the management is following a new roadmap focused on maintaining production capacity and preserving employment levels. Key elements of the concordat process are expected to become clearer during the creditors' meeting, where agenda items and resolutions will be discussed.

Other players in the industry are assessing the uncertainties and potential risks associated with the situation, emphasizing that maintaining trust and stability is of vital importance.

How the concordat process of KOR Grup Demir Çelik unfolds will have a direct impact on the company’s production capacity and the steps to be taken to strengthen its supply chain. A successful restructuring could ease short-term production bottlenecks; however, the outcome will largely depend on the depth of the agreements reached with creditors. In the long run, the aim is to restore the company’s financial health and reinforce market confidence through a balanced restructuring plan. Maintaining clear and honest communication with all stakeholders will be essential throughout this process.

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