Turk Ilac Reports Default

The Turkish pharmaceutical manufacturer Turk Ilac has defaulted on a domestic bond. The company announced on July 16 that it was unable to meet an outstanding payment by the due date.

Last month, the Third Commercial Court in Ankara had already granted the company a three-month provisional creditor protection period (concordat).

This default marks a major setback for Turk Ilac, which had experienced strong growth during the COVID-19 pandemic. As a result of the court’s decision, Borsa Istanbul temporarily suspended trading in the company’s stock and downgraded it to the watch list.

To stabilize its financial position, Turk Ilac received approval from the Turkish Capital Markets Board (SPK) to increase its registered capital by 376%, from 1.57 billion to 7.5 billion Turkish lira.

In addition, a several-week interruption in serum production at the Akyurt plant due to maintenance work weighed on operating performance and reduced short-term revenue.

In addition to the now-defaulted bond, Turk Ilac has two other outstanding bonds on the domestic capital market.

Growing Problems in the Turkish Capital Market

The default is part of a growing number of financial difficulties faced by companies listed on the Borsa Istanbul. High interest rates, restrictive lending, and the challenging economic environment are forcing more and more companies to file for court-supervised debt restructuring.

In 2025, the number of debt restructuring proceedings initiated reached a record high of 2,817.

More Companies Under Pressure

Other publicly traded companies are also struggling with financial problems:

• Mega Polietilen filed for creditor protection in 2024 and successfully completed the proceedings in June 2025.
• Yesil GYO remains in restructuring proceedings following several court rulings.
• Kontrolmatik defaulted on a bond payment in early July. The company had previously failed to service several debt instruments and is currently negotiating a financial restructuring with banks.
• Vestel Elektronik recently commissioned the investment bank Houlihan Lokey to restructure a $500 million Eurobond.
• Borlease Otomotiv has been in default on coupon payments for domestic lira-denominated bonds since February.

This development highlights the mounting pressure on many Turkish companies, whose financing costs have risen significantly due to high interest rates and limited financing options.