Turkish deposit insurer takes over two Cukurova ventures

ISTANBUL

The Savings Deposit Insurance Fund of Turkey has announced that it has taken over two companies from Cukurova Group -- national television channel Show TV and vehicle manufacturer BMC -- as part of its efforts to liquidate the debt the group, one of the largest in Turkey, owes to TMSF, the Turkish deposit insurer. 
The companies had been taken over before and were returned to the group upon penning protocols and setting a pay-back schedule, a statement from TMSF said.
"Cukurova group has failed to fulfil its financial obligations and has not made any payments to remove the default status within the grace period the Fund specified as of September 2012," the statement said.
TMSF would investigate assets belonging to the controlling shareholders of the two companies to ensure repayment, the statement added.
The takeover is a result of lingering debt owed to the government by Cukurova Group CEO, Mehmet Emin Karamehmet, in relation to a banking sector collapse and severe recession that happened in 2001, when several banks had sustained huge financial losses on loans given to companies within the group. 
Karamehmet so far has had to pay upwards of $4 billion to the government to settle his debt.