Financial Restructuring

What is Financial Restructuring?

Specialised employees of the bank’s Financial Restructuring department assist clients with increased credit risk. Other banks often call this the Special Management department. Financial Restructuring employees always try to join forces with the client to devise a plan to resolve their financial difficulties while also reducing the increased credit risk. When is assistance required by Financial Restructuring?

Financial Restructuring assistance is necessary in cases where the bank ascertains that there is an increased credit risk. At that point, the bank may decide to transfer credit management to Financial Restructuring. Signs of this may include:

  • Failure to meet obligations arising from the credit agreement with the bank;
  • The client has incurred a loss for one or more years;
  • The client lacks adequate capital resources and/or cannot access externally raised risk-bearing capital to absorb losses;
  • The liquidity position is (potentially) insufficient to meet short or medium-term obligations;
  • A decline in the value of the collateral provided to the bank. 

For many clients, the period surrounding being assigned to Financial Restructuring is intense and fraught with uncertainties. In most cases, the client and bank share the same objective: restoring the client’s financial health as quickly as possible, so that Financial Restructuring no longer needs to maintain credit management. Based on previous experience, this approach is successful in most cases.

When does Financial Restructuring’s involvement end?

Financial Restructuring’s involvement ends when the bank considers the company’s credit risk profile to have normalised and when the outlook for the future is favourable. The case is then transferred back to regular relationship management. However, clients should bear in mind that there may be a gap of several months between the moment the improvements are identified and the moment of transfer.

Complaints

We handle our client’s Financial Restructuring cases with due care. However, in the event you would like to submit a complaint, you will find our complaints procedure on this page.

Further information

If you should have any questions about the aim and approach of Financial Restructuring, your contact person at Deutsche Bank would be happy to assist.