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In recent years, Demirören Holding has received loans from various banks to finance its investments in the media, energy sector and gambling. Negotiating with the banks to repay these credit debts, the restructuring of Demirören’s credit debt, except for accrued interest, could exceed US $ 2 billion (nearly Turkish lira 18 billion), according to reports .
CLICK – Media Ownership Monitor Turkey
While the total amount of restructured credit debt was expected to be around $ 1.5 billion in recent weeks, diken.com.tr reported based on Reuters information that if $ 800 million in credit were received by Demirören from Turkish state bank Ziraat Bank to buy media from Doğan Holding in 2018, the holding company reportedly received $ 1.2 billion in credit for the energy and gambling sectors.
In order to pay off this debt, Demirören Holding negotiated with 8 to 9 banks, including the Ziraat bank. Added to the $ 800 million credit obtained from Ziraat to take over the media from Doğan Holding in 2018, the majority of this debt is to public banks.
Banking sources said negotiations are expected to be very difficult on Demirören Holding’s part. Noting that there is more than one option on the table to collect credit debt, the sources said the holding company may have to divest some of its companies.
While Demirören Holding sold its energy companies Güzel Energy (Total Oil Turkey) and M Oil to OYAK in 2020, neither the Ziraat bank nor the Demirören group have yet made a statement on the recent allegations. (DE / HA / SD)
