Hedef Holding defaults on Borsa Istanbul repo amid Ponzi-style fund scandal and arrests

On September 28, Hedef Holding missed the repayment of a TRY 1.08 billion repo on the Borsa Istanbul money market, marking its first default in the sector. The failure was precipitated by a court order that froze the firm’s and its subsidiaries’ shareholdings after authorities targeted the main controlling shareholder. The seizure caused an immediate cash crunch, preventing the firm from accessing reserves needed for the loan.

Hedef Holding has formally requested an extension of the repo’s maturity and pledged collateral under revised conditions. The episode is part of a broader crackdown on alleged Ponzi-style stock-market funds, which saw the Capital Markets Board (SPK) and the Istanbul chief public prosecutor’s office order the liquidation of 131 funds, including 13 managed by Hedef Portfoy. Former chairman Namik Kemal Gokalp, his wife Sibel Gokalp, and family member Mehmet Ziya Gokalp remain in pre-trial detention. The company’s market valuation collapsed, with its shares sliding from TRY 396 in early August to about TRY 8.35 by the end of September.