Skip to content
News from Turkey

Zorlu Holding in Debt Restructuring Talks as Vestel Seeks Relief on $500 Million

zorlu holding

Türkiye’s Zorlu Holding has begun discussions with state-owned lenders to restructure its debt, in what could become the country’s largest corporate loan workout since the 2018 lira crisis. The conglomerate, which carries roughly $3.2 billion in outstanding loans, is reportedly working on a restructuring framework as its subsidiary Vestel Elektronik negotiates with banks over more than $500 million in debt. The talks come amid persistent high borrowing costs, currency pressures and weak European demand.

CEO-Level Talks With State Banks

According to sources familiar with the matter, Zorlu Holding held senior-level meetings last week with state-owned banks and smaller private lenders to initiate discussions on a potential debt restructuring plan.

The discussions remain private, and it is not yet clear how much of the group’s total debt will be subject to restructuring. However, the process could mark the largest corporate workout in Türkiye since the 2018 currency crisis, when several major conglomerates renegotiated billions of dollars in loans.

Sources indicated that key assets, including the landmark Zorlu Center shopping mall in Istanbul, have been pledged as collateral to state banks. Asset sales are also reportedly under consideration to offset losses in certain business lines.

Zorlu declined to comment directly on the talks, referring instead to a statement by its subsidiary Vestel that it continues to work with financial institutions in the ordinary course of business.

$3.2 Billion Debt Load

Based on the company’s latest available financial statements, Zorlu Holding had approximately $3.2 billion equivalent in outstanding loans at the end of 2024.

The debt composition is as follows:

  • Around 50% denominated in U.S. dollars

  • Approximately 30% in euros

  • The remainder in Turkish lira

Given elevated domestic interest rates and currency volatility, foreign currency borrowing remains a key balance-sheet risk factor.

Vestel in Advanced Talks Over $500 Million

Separately, Vestel Elektronik is reportedly in advanced negotiations with banks to restructure more than $500 million of debt.

Vestel has reported losses in every quarter over the past two years, reflecting financing pressures and weaker export demand. Following news of the negotiations, Vestel shares rose as much as 9.5% intraday, while its 2029 dollar bonds fell below 69 cents on the dollar, extending recent declines.

The company stated that its financial liabilities, cash-flow outlook and debt management plans are already disclosed in public filings and that discussions with banks continue as part of normal operations.

Structural Pressures on Exporters

Vestel and other major Turkish exporters have faced a challenging environment marked by:

  1. Elevated domestic interest rates

  2. A relatively stronger Turkish lira

  3. Softer consumer demand in Europe

Europe remains Vestel’s largest export market. Weak demand there has pressured revenue, while high lira borrowing costs have increased financing burdens. In October, Vestel was negotiating to replace short-term lira loans with longer-term hard-currency financing to ease short-term liquidity stress.

Last year, Zorlu Holding announced a package of measures to reassure investors, including asset sales and workforce reductions. The group also refinanced roughly $1.3 billion in short-term lira borrowings into longer-term euro-denominated loans with maturities extending up to 15 years.

Broader Group Exposure

Beyond electronics, Zorlu Holding also maintains a controlling stake in Zorlu Enerji, a renewable energy producer.

While the diversified structure provides multiple revenue streams, it also increases consolidated financing needs and exposes the group to sector-specific volatility.

Echoes of 2018

Türkiye’s corporate sector underwent significant restructuring during the 2018 currency crisis, when major conglomerates renegotiated large foreign currency debts. At the time, high-profile restructurings—including multi-billion-dollar loan packages—reshaped the banking and corporate landscape.

If finalized, the Zorlu process could become the most significant corporate debt workout since that period.

PA Turkey intends to inform Turkey watchers with diverse views and opinions. Articles in our website may not necessarily represent the view of our editorial board or count as endorsement.

Follow our English YouTube channel (REAL TURKEY):
https://www.youtube.com/channel/UCKpFJB4GFiNkhmpVZQ_d9Rg

Twitter: @AtillaEng
Facebook: Real Turkey Channel: https://www.facebook.com/realturkeychannel/

Related articles