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Turkish industrial conglomerate Zorlu Holding faces mounting debt pressure as its energy subsidiary, Zorlu Enerji, seeks to defer a $60.5 million interest payment until April 2027, days after its electronics arm, Vestel, unveiled a $500 million bond restructuring plan.
The company launched a consent solicitation process covering its $1.1 billion in outstanding Eurobonds, identified by ISIN codes XS2926261426 and US98977LAA44, while also seeking approval for temporary additional restrictions on the bonds’ terms and conditions, according to its disclosure.
Issued in November 2024, Zorlu Enerji’s bonds trade at around 55% of their face value as investors weigh the company’s ability to meet its obligations.
Bondholders are due to vote on the proposal on Nov. 23, 2026. Approval requires support from holders representing at least 75% of the total bond principal represented at the meeting, meaning the payment deferral is not yet confirmed.
After the disclosure, the company's shares on Borsa Istanbul fell more than 8.7% in Friday's session.
In its consent solicitation documents, Zorlu Enerji warned that the cash it expects to have available between October 2026 and March 2027, including proceeds from the sale of a stake in electric vehicle charging venture Electrip Global, will not be enough to cover its projected outflows.
These include mandatory investments in its electricity distribution network, overdue supplier payments and debt servicing.
The company had agreed to sell its entire 41.28% stake in Electrip for $147.6 million to Wren House Infrastructure LP and Kuwait's sovereign wealth fund, the Kuwait Investment Authority, earlier this week.
It also appointed financial advisers Houlihan Lokey and Servo Capital about a month before launching the deferral process to assess options for restructuring its capital structure.
Fitch Ratings downgraded Zorlu Enerji to B- in September and placed the rating on negative watch, citing deteriorating liquidity and increased reliance on refinancing short-term debt. The agency noted that the company had $124.5 million in debt coming due over the 12 months following June 2026 and projected negative free cash flow in both 2026 and 2027.
At the end of the first half of 2026, Zorlu Enerji had ₺60.8 billion ($1.2 billion) in borrowings, including bank loans, bonds and lease liabilities. After deducting ₺2.4 billion in cash and cash equivalents, its net debt stood at approximately ₺58.4 billion, while total liabilities reached ₺79.1 billion.
Meanwhile, Vestel, one of Türkiye’s leading electronics manufacturers, is pursuing a broader debt restructuring through a bond exchange offer and negotiations with domestic creditor banks.
Under the bond proposal, investors can either retain their full principal by extending the maturity from May 15, 2029, to May 15, 2035, with the annual interest rate reduced from 9.75% to 4%, or exchange their existing holdings for new bonds due May 15, 2032, worth 55% of the original principal and carrying a 6% annual interest rate, effectively accepting a 45% haircut. Both options include annual principal repayments.
Alongside the bond exchange, Vestel is negotiating with domestic creditor banks to restructure its existing debt, with a proposed two-year grace period on principal and interest payments and a final maturity in 2041, although discussions remain ongoing.
The restructuring efforts come as Vestel faces a sharp deterioration in its financial performance, with revenue falling 47.8% year over year to ₺46.9 billion in the first half of 2026 and its net loss reaching ₺10.3 billion.
Gross profit also dropped to ₺6.3 billion from ₺15.2 billion a year earlier, while net financial debt stood at ₺106.1 billion, compared with cash holdings of just ₺2.3 billion.
Credit rating agencies have responded to the company’s worsening financial position by lowering their assessments. On Oct. 1, Moody’s downgraded Vestel’s corporate family rating from Caa3 to Ca and cut the rating on its $500 million notes due in 2029 from Caa3 to C, assigning negative outlooks to both.
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