Private Creditor v Private Investor* A private investor never agrees to an unprofitable transaction while a private creditor may agree to a loss in order to avoid a bigger loss from non-recovery of debt owed to it. A public authority acting as a private operator must disregard any losses it may incur from State aid it granted in the past. Introduction A question that is often asked is whether the same company may receive several awards of State aid. The answer is that a company which is not in difficulty may obtain State aid on multiple occasions as long as the different amounts of aid support different eligible costs and are in compliance with the relevant rules. A related question is whether the state can inject capital as a private investor in a company to which it has already
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The EU Court of Justice annuls a judgment of the General Court, finding that previously granted State aid must be disregarded when it applies the private investor principle (FIH)
* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.
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