The EU Commission finds that the conversion of almost worthless debt into equity was a preferable solution for a market economy investor in the aircraft industry (Sonaca)

Article published on Lexxion State Aid Blog

A Public Authority Can Behave Like a Private Investor even when the Beneficiary Has Little Prospect of Future Profitability* Introduction When a public authority invests in an undertaking, it must earn a return at market rates, otherwise the investment is State aid. Normally, it is much easier to prove that the investment has a reasonable prospect of profitability and, therefore, that it would be made by a private investor, when the recipient undertaking is in a good financial situation. However, as shown in a number of cases, investment in a financially troubled company may also not be State aid if the investment has the capacity to turn the company around and make it profitable again. The case reviewed in this article is unusual, not only because the beneficiary company was in

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

Phedon Nicolaides, The EU Commission finds that the conversion of almost worthless debt into equity was a preferable solution for a market economy investor in the aircraft industry (Sonaca), 5 June 2013, e-Competitions Bulletin June 2013, Art. N° 59047

Visites 87

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues