Borlease Otomotiv (BORLS) on January 14 defaulted on the second coupon payment of a domestic lira bill (TRFBORL72617), the company said in a stock exchange filing.

The 363-day paper worth Turkish lira (TRY) 150mn ($3.5mn) was sold in July at TLREF+5%. It was supposed to pay four quarterly coupons.

The company, which provides fleet leasing and car rental services, delivered the first TRY 18.5mn coupon in October before defaulting on the TRY 17mn second coupon.

Default on four papers

On January 13, the company said that it would default on two more papers. The third coupon payment of another paper (TRFBORL42610) scheduled for January 14 would not be delivered while the redemption and the last coupon payment of a further paper (TRFBORL12639) would not be executed on January 27, it stated.

Previously, the company failed on January 9 to deliver the last coupon payment of a TRY 400mn paper (TRFBORL12613), which should also have been redeemed on the same day.

The 364-day paper was sold in January 2025 at a fixed annual coupon rate of 46.5%, which would be paid in four quarterly installments. The company successfully delivered the first three payments.

On January 23, Borlease will hold a meeting with the investors in this paper.

Not so champions league

D Yatirim Bankasi, Nurol Yatirim Bankasi and Allbatross Menkul Degerler acted as the intermediary in three deals.

Hedef Portfoy Yonetimi (a unit of Hedef Holding (HEDEF), which was holding the papers, said in stock exchange filings that they were allocating provisions for the papers.

Share sales to pay coupons

Bor Holding, the parent company of Borlease, injected TRY 143mn into Borlease in November and TRY 104mn in December raising the funds in question from the sale of Borlease shares.

On December 24, Borlease, as a result, successfully delivered the TRY 29mn worth of a second coupon payment on another TRY 250mn 364-day paper (TRFBORL32611), sold in March 2025 at TLREF+5%.

In November, the company delivered the second coupon payment of another paper (TRSBORL82619). The third coupon payment is scheduled for February 18.

Also in November, the company delivered the third coupon of another paper (TRSBORL22714). The fourth is scheduled for February 11. The fourth coupon payment and the redemption of this paper is scheduled for March 25.

Restructuring application

On December 2, Borlease applied to Halkbank (HALKB) to benefit from the Financial Restructuring Framework Agreement scheme to restructure its existing loans.

The Financial Restructuring Framework Agreement was approved by the banking watchdog BDDK in September 2018. It was signed by 28 banks as of December 2018. Since then, it has been extended for two-year periods.

Share price nosedived

In 2023, Borlease sold a 28% stake via a Borsa Istanbul initial public offering (IPO) for TRY 1.3bn ($47mn), or TRY 25.29 per share.

The share price stood at TRY 2.85 on January 19.

Unending share sales

Following the IPO, Bor Holding, launched in 2013, controlled a 72% stake in the company, including 35mn privileged Type A shares.

Board chairman Ozgur Cem Hancan held a 95% stake in Bor Holding and deputy chairperson Muge Cetin held the remaining 5%.

Bor Holding’s stake declined to 69% in October 2023, 68% in January 2025 and 65% in June 2025.

Hedef Portfoy’s stake in the company rose to 5.3% in June 2025 before falling below the 5% threshold in December 2025.

Q Investment Bank

On January 1, 2026, Q Yatirim Bankasi (Q Investment Bank) acquired a 7.8% stake in the company while Bor Holding’s stake declined to 49.8%. Currently, the free-float rate stands at 44%.

In November 2025, Ali Ercan, board chairman of Q Investment Bank, was arrested as part of a loan sharking prosecution.

Sixt car rental franchise

Istanbul-based Borlease, launched in 2013, has operated as the Turkey franchise of Sixt Rent A Car (Frankfurt/SIX2) since 2019.

At end-June 2023, Borlease had a fleet of 4,123 vehicles and leased an additional 3,057 vehicles.

At end-September 2025, the company had 5,138 vehicles in addition to 5,233 leased vehicles.

In January-September 2025, it bought 3,583 vehicles for a consideration of TRY 5bn and sold 1,873 vehicles for TRY 2bn.

At end-September, there were a total of 164 fleet leasing and car rental companies in Turkey with a combined fleet size of 235,300 vehicles, according to the sectoral association Tokkder.

Borlease posted a net loss of TRY 1.6bn in January-September 2025 after reporting a net loss of TRY 2bn in 2024.