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Yildiz $7 Billion Restructuring Bid Adds to Turkish Bank Woes

  • Large Turkish companies start to struggle with foreign debt
  • Godiva owner requested largest-ever loan from Turkish banks
Ulker Biskuvi Sanayi’s parent Yildiz Holding bought Godiva from Campbell Soup Co. in 2007.

Ulker Biskuvi Sanayi’s parent Yildiz Holding bought Godiva from Campbell Soup Co. in 2007.

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Turkish cookie giant Yildiz Holding AS’s unexpected request to restructure as much as $7 billion in loans may mark the end of a lending frenzy that’s been a boon to the nation’s growth.

The request by one of the country’s largest and most successful companies spurred lenders into emergency negotiations after Yildiz asked that they restructure its debts by getting together and issuing a new loan, which would be the nation’s largest ever. Many of the 10 banks involved are already in talks over a $4.8 billion default by Otas, which struggled to make dollar-denominated repayments on its loan for telecom operator Turk Telekom.