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Turkish conglomerate Zorlu Holding has applied to restructure part of its debt burden, which reached roughly $4 billion at the end of 2024, as it seeks to ease repayment pressure and strengthen its balance sheet.
The application, filed under Türkiye's Financial Restructuring Framework, covers existing loans held by the group's consumer electronics unit Vestel and textile businesses. Zorlu aims to bring repayment schedules more in line with cash generated from operations while extending the maturities of loans nearing their due dates.
The group also expects the process to strengthen working capital, balance financing costs and improve operational flexibility through measures aimed at boosting profitability, according to a statement.
Financial details of the restructuring, including its scope and terms, were not disclosed. However, Bloomberg reported earlier this year that Turkish electronics manufacturer Vestel was in talks with banks to restructure more than $500 million in debt.
Chairman Ahmet Zorlu described the restructuring as a planned move to strengthen the group's financial position amid mounting global economic pressures.
"In an environment where global economic and geopolitical dynamics are being reshaped and we are experiencing macroeconomic volatility, operational flexibility and a strong balance sheet have become more critical than ever for financial resilience," he said.
Zorlu pointed to war-driven commodity price swings, supply chain disruptions, sluggish demand in Europe — the group's main export market — and the growing presence of Chinese companies in Europe as reasons behind the move.
"This is a planned step to establish a healthier financial structure and further strengthen our operations," he added.
The restructuring follows years of financial strain across the group, particularly at Vestel, as high interest rates, a stronger lira and weak demand in Europe weighed on earnings and piled pressure on its balance sheet.
Vestel, one of Europe's largest consumer electronics and home appliance manufacturers, has reported consecutive losses as financing costs climbed and demand in its export markets softened.
In response, the company announced plans last year to cut about 2,000 jobs—roughly 10% of its workforce—as part of a broader efficiency drive, while also pursuing debt refinancing and measures to strengthen cash generation.
According to the latest combined figures in the group's 2024 report, Zorlu's net debt stood at ₺176.1 billion ($3.8 billion), while total liabilities reached ₺272.5 billion.
Vestel, the conglomerate's largest subsidiary, reported net debt of ₺93 billion ($2 billion) at the end of the first quarter of 2026. Its net debt-to-equity ratio climbed to 264%, while total liabilities stood at ₺164.2 billion.
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