Türkiye’s high inflation and tight monetary policies are putting increasing strain on both consumers and producers, leading to a wave of business closures and financial distress across multiple industries, from textiles to manufacturing. The latest in a growing list of companies seeking legal protection from creditors is Konil Kağıt, a relatively young yet established player in Türkiye’s paper manufacturing sector.
A 12-Year-Old Manufacturer Unable to Overcome Financial Strain
Founded in 2013 in Gaziantep, Konil Kağıt Sanayi ve Ticaret Limited Şirketi has been a key regional producer with an annual manufacturing capacity of approximately 30,000 tons. Despite its industrial capacity and market presence, the company found itself unable to overcome mounting financial difficulties.
On August 5, 2025, the firm formally applied to the Gaziantep 1st Commercial Court of First Instance for concordat protection—a legal mechanism in Türkiye designed to give struggling businesses time to restructure and avoid full bankruptcy.
Court Grants Three-Month Temporary Protection
After reviewing the application, the court granted Konil Kağıt a three-month temporary concordat period starting from August 7, 2025. This period is intended to allow the company to stabilize its operations, negotiate with creditors, and develop a viable repayment or restructuring plan.
To oversee the process, the court appointed a supervisory committee consisting of:
Dr. Abdullah Erdoğan, legal expert and lecturer
Sedat Kılınç, certified public accountant
Fevzi Elmas, sworn financial advisor and independent auditor
Their role is to monitor all financial transactions and ensure the company operates within the boundaries of the concordat agreement.
Next Hearing Scheduled for October 23, 2025
According to the court’s ruling, the case is officially registered under file number 2025/707. A follow-up hearing is scheduled for October 23, 2025, when the court will evaluate the company’s progress and determine whether to extend the protection period, approve a restructuring plan, or move toward liquidation if no viable plan emerges.
The ruling also stipulates that:
Creditors have seven days from the start of the temporary protection to file objections and request dismissal of the concordat.
All company payments, as well as transactions involving real persons connected to the firm, require the prior approval of the appointed commissioners.
Economic Context and Industry Impact
Konil Kağıt’s financial troubles mirror a broader challenge faced by many mid-sized manufacturers in Türkiye. Rising input costs—driven by inflation, currency fluctuations, and higher borrowing rates—are eroding profit margins.
The paper industry in particular has been hit by:
Increased raw material prices for pulp and paper chemicals
High energy costs, especially for electricity-intensive production
Reduced domestic demand as businesses and consumers cut back on spending
Tighter access to credit under restrictive monetary policies
For regional economies like Gaziantep—one of Türkiye’s industrial powerhouses—such setbacks can have ripple effects, impacting suppliers, logistics partners, and local employment.
Looking Ahead
Whether Konil Kağıt can successfully navigate the concordat process will depend on its ability to secure creditor cooperation, restructure debts, and adapt operations to the current market climate. If successful, the firm could emerge leaner and more resilient.
However, if economic pressures persist and revenue recovery remains slow, there is a risk that more manufacturing firms in Türkiye could follow the same path, signaling deeper structural challenges in the country’s industrial sector.
