The EU Commission assesses whether a State acted as a private creditor when it allowed a debtor to continue operations (JSC Liepajas Metalurgs)

The State Acting as a Private Creditor & State Aid Enforcement and Procedural Rights* In this article I review Commission decision SA.37100 on JSC Liepajas Metalurgs [LM], once Latvia’s largest steel company and major employer. The decision examines whether Latvia acted promptly to recover a debt owed to it by a company that faced financial difficulties. The question was whether Latvia acted as a private creditor when it allowed the debtor to continue operations. JSC Liepajas Metalurgs: Debts to the state On receipt of a complaint, the Commission examined whether LM had received state aid. In December 2009, the Commission had approved a state guarantee covering a 10-year loan of EUR 89 million for the modernisation of LM’s production. The guarantee was secured against LM's

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Phedon Nicolaides, The EU Commission assesses whether a State acted as a private creditor when it allowed a debtor to continue operations (JSC Liepajas Metalurgs), 20 July 2015, e-Competitions Bulletin July 2015, Art. N° 77173

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