Turkish packaging maker Barem Ambalaj files for court protection as US$228M plant expansion, macro headwinds squeeze cash flow

TURKEY – Barem Ambalaj has filed for court protection from creditors, with the Izmir 1st Civil Court granting a three-month temporary moratorium, as the Turkish packaging manufacturer’s ambitious €200 million (US$228 million) paper factory expansion and severe macroeconomic headwinds severely constrained its cash flow.

The Borsa Istanbul-listed company, which was downgraded to the Watchlist Market on 31 July 2026, continues production at its core packaging plants in Izmir, Gaziantep and Karaman while operations at the Konya Eregli paper mill have been temporarily halted. 

The company had been listed on Borsa Istanbul since 2022.

Court Protection Process and Market Context

The concordato ruling follows a growing trend among Turkish companies seeking court protection, with Turk Ambalaj, Pakun, Infinia Advanced Elektronik and Geosis Powertrain among others having received concordato rulings ahead of planned IPOs. 

As of 25 July 2026, 134 companies were in the IPO queue, while the list of defaulters already traded on Borsa Istanbul has been lengthening. 

Barem’s core business includes manufacturing flexible packaging solutions, corrugated cardboard, paper bags and printed packaging materials for food, beverage, pharmaceutical and industrial sectors. 

The company’s Konya plant expansion was part of a broader strategy to increase domestic paper production capacity amid rising import costs and supply chain disruptions affecting the Turkish packaging industry.

Financial Pressures and Strategic Implications

The decision to seek protection comes as Turkish packaging manufacturers face significant headwinds, including high energy costs and a weakening lira that have increased raw material import costs and squeezed margins across the sector. 

Barem’s expansion project, designed to reduce dependency on imported paper, was launched before the sharp deterioration in macroeconomic conditions and has been cited as a primary contributor to the company’s liquidity challenges. 

The three-month moratorium provides Barem with a period to restructure its obligations while maintaining production at its core facilities. 

The company’s shares, which were previously traded on the BIST Stars market, will now trade in the Watchlist Market alongside 16 other companies. 

The outcome of the concordato process will determine whether Barem can successfully restructure and continue operations or faces potential liquidation. 

Turkish companies across multiple sectors have been filing for concordato amid high inflation and interest rates that have increased borrowing costs and reduced consumer spending, placing additional pressure on manufacturers’ cash flow positions.

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