Special asset management at banks

Your business under increased supervision from the bank? Time for action

When your business is transferred to Special Management by the bank, it is often a sign that the bank assesses the financial risk as heightened. This is not a reason for panic but rather a moment where strategic and legal action, and thus action, is crucial. Our specialists are ready to guide you through this process. 

What does Special Management mean? 

Special Management is the department within a bank that deals with companies for which the risk of payment problems is increasing. This can be due to exceeding credit limits, depreciation of collateral, or a negative industry assessment. Once transferred, a lot changes: 

• You will get a new account manager; 
• You must report frequently and in detail; 
• Interest rates will increase due to risk premiums; 
• The bank may require additional collateral or even impose significant conditions, such as appointing an interim director or investigation firm; 
• The costs of this will be your responsibility. 

The interests of the bank and the entrepreneur often diverge at this stage. Therefore, it is important that you know what you should and should not do. 

Possible scenarios 

1. The bank wants to continue working with you but sets conditions: 
   Consider additional collateral, reorganization, or refinancing. Guarantees or mortgage rights on personal assets may come into play. We help you assess the legal impact of this and negotiate reasonable terms. 
2. The bank has (quietly) parted ways: 
   In this case, the bank focuses primarily on damage limitation and termination of the credit relationship. However, a bank cannot terminate lightly. If the termination unnecessarily harms your company, we can file an objection on your behalf or even prevent a termination through the courts. 
3. Exploring alternative financing: 
   While finding new financing is challenging at this stage, it is not impossible. We advise you on refinancing through other banks, investors, or crowdfunding and ensure that you get the space to make this happen. 
4. Bankruptcy and restart: 
   Sometimes bankruptcy is unavoidable. But this can also be the beginning of a successful restart. We assist you in preparing and negotiating the purchase of assets from the curator, aiming for a viable restart. 

Interest rate swaps and other financial products 

Have you previously entered into complex products such as an interest rate swap? Terminating the credit relationship can lead to significant costs. We investigate whether there are opportunities to limit or reclaim damages.

Conclusion: quick action is essential 

Special Management does not mean that it is too late, but it does mean that time is running out. Right now, it is important to act professionally and decisively, make clear agreements, and protect your position. We assist you with legal and strategic advice, at the right moment. 

Have you been transferred to Special Management? Then contact our specialists immediately. We ensure you sit at the table with your bank well-prepared.