ABN AMRO Bank N : Financial Restructuring & Recovery

With all the measures that are in place to contain the coronavirus, economic activity in the Netherlands has been severely impacted. That impact has carried over to the revenues of Dutch companies, which in turn affects ABN AMRO's Financial Restructuring & Recovery department.

FR&R

ABN AMRO's Financial Restructuring & Recovery (or FR&R) department helps companies facing financial difficulties and other problems. Many of those companies find themselves unable to fulfil their obligations: obligations that they have taken on in respect of their suppliers, ABN AMRO itself, their partners, the tax authorities, their landlords etc.

A plan to overcome the problems

The FR&R team work together with the business owner to map out the situation and make a plan to overcome the financial difficulties. For many business owners, this is a demanding and nerve-wracking time. On average, two thirds of companies under FR&R's supervision manage to sort out their issues, although of course this varies over time and by sector. Over the years, the average time that a company spends with FR&R is two to three years.

No increase in numbers from the Dutch SME sector at present

FR&R has not yet seen any significant increase in the numbers of Dutch SME companies being put under their supervision. The government has set up various schemes to help numerous companies, and any client of ABN AMRO that has a loan of up to 50 million euros can automatically apply for a 6-month deferral on its repayments and interest. Around 100,000 companies have applied for that automatic deferral, which offers companies breathing space, and time to make plans for dealing with the coronavirus impact and perhaps find other ways to compensate for the loss of revenue.

An individual plan for each client

The possibilities that are available are different for each company, obviously. A restaurant with a large patio and a delivery service will have more options than a café without any outdoor space, for instance. That is why the experts at FR&R always consider what possibilities are available in the client's specific situation. The team also try to put forward solutions already existing within the sector.

In the calendar quarters ahead, the economy is expected to contract. Generally, in times of economic contraction, the number of Dutch SMEs being transferred to FR&R for assistance will rise. FR&R is preparing for this, and has taken measures to add 10-20% new members to its team on short notice, if necessary. This will ensure that its capacity remains sufficient to offer each company an individual approach, even if the numbers increase.

Visit ABN AMRO's website to find out more about FR&R and how it works.