Newsletters
Zorlu Enerji's dollar bond due 2030 was set for its steepest one-day decline on record on Tuesday after the Turkish energy company brought in restructuring advisers, as falling sales and a weakening lira squeeze its ability to service international debt.
The bond was indicated as much as 11 points lower, trading around 63 cents on the dollar, according to pricing data compiled by Bloomberg. The drop followed a late Monday filing disclosing that Zorlu Enerji had hired Houlihan Lokey and Servo Capital as debt advisers.
The move comes two months after Vestel Elektronik, another company within the Zorlu Group, hired Houlihan Lokey for its own restructuring talks with bondholders.
The back-to-back advisory appointments suggest financial strain may be extending beyond a single unit to affect one of Türkiye's largest conglomerates more broadly.
The Zorlu Group, controlled by the Zorlu family, has interests spanning energy, electronics and real estate.
Zorlu Enerji sold its first international bond, a $1 billion dollar-denominated note, in 2024. The bond has since come under significant pressure, culminating in Tuesday's sharp price decline.
The company's revenue fell to 13 billion lira, or $267 million, in the first half of 2026, down from 17.3 billion lira in the same period a year earlier. At the same time, the lira has weakened roughly 15% against the dollar over the past 12 months, a decline that makes dollar-denominated obligations considerably more expensive to repay out of lira-based earnings.
Zorlu Enerji's net debt stood at $1.25 billion as of the end of the first half of 2026, according to an August company presentation.
Company management had been scheduled to attend a JPMorgan Chase & Co. conference in London this week but canceled the trip after the advisers were hired, according to people familiar with the matter who asked not to be identified discussing private matters. A spokesperson for the company did not immediately respond to a request for comment.
Set as preferred source
Set as preferred source
1 min read
1 min read
