Our aim is to suj
clients who are having
liquidity difficulties
and return them to
a healthy state 9
in practice
SECTOR SPECIAL GSAM
Regional differences
4
'The difference is that we have more tools at our disposal
to help steerthe situation in a certain direction. In fact, many
enjoy the quick decision Iines."
Although the department policy within Rabobank is the
same around the world, sector, regional economie and legal
differences dictate SAM's involvement. Since year-end 2007,
says Staal, the bank's international portfolio has experienced
a six-fold increase in commitments being referred to SAM,
and this number is expected to rise as the crisis bites deeper.
However, the credit crisis is not the only factor causing
companies to feel embattled. According to Helen Crick, head
of SAM Australia New Zealand, the droughts that have
To bridge the period of negative cash flows,
Rl played a major role in structuring and
providing a so-called DIP facility (Debtor
in Possession). This DIP facility allowed
the company to keep trading, notwith-
standing its application for Chapter 11,
a part of the United States Bankruptcy
Code that permits reorganisation. During
the Chapter 11 period, the company has
been able to dispose of certain non-key
assets and refocus on its core capacities.
The company is currently preparing to
emerge from Chapter 11 later this year.
Again, Rabobank played an important
role in the structuring and syndication of
a secured syndicated recovery facility that
will be part of the recovery plan. As a result
of this enduring commitment, Rabobank
was mandated with CoBank as Joint Lead
Arranger, Joint Bookrunner and Joint
Syndication Agent for USD 1.65 billion
of exitfinancing.
A leading US poultry operator, one with a
long-standing relationship with Rabobank,
entered a difficult period when soaring
feed prices and steeply decreasing poultry
prices both hit the poultry sector severely
during 2008 and up to the beginning
of 2009. Adriaan Weststrate - Managing
Director at RTs Atlanta office and Rabo's
unofficial 'US poultry authority' - and his
team indicated that this margin squeeze
would be short term. As a result, a financial
restructuring plan was developed in close
consultation with SAM New York and GSAM.
The case ultimately produced stronger
cliënt intimacy and, at the same time,
Rabobank had the opportunity to prove
itself as a constructive and reliable
financial partner.
THE WORD
ISSUE 21
