CASE COMMENTS : STATE AIDS – NOTION OF STATE AID – PRIVATE CREDITOR TEST – BURDEN OF PROOF

Private creditor test: The Court of Justice confirms that, by not comparing the benefits and drawbacks of the various debts recovery procedures opened to a creditor, the European Commission has not fulfilled the private creditor test to establish the existence of State aid (Buczek Automotive)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The judgment of the Court of First Instance of 17 May 2011, which partially annulled the Commission's decision of 23 October 2007 ordering the Buczek Group, which is active in the steel production sector, to repay the unlawful aid allegedly granted to it by Poland (Trib. EU, Judgment of 17 May 2011, Buczek Automotive v Commission, Case T-1/08). In the Commission's view, Poland, which had claims against Buczek, had, by simply initiating legal debt collection procedures and thus waiving enforcement of its claims which could have been converted into cash in bankruptcy proceedings, conferred an advantage on Buczek equivalent to the amount outstanding and had

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  • Sheppard, Mullin, Richter & Hampton (Brussels)

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Jacques Derenne, Private creditor test: The Court of Justice confirms that, by not comparing the benefits and drawbacks of the various debts recovery procedures opened to a creditor, the European Commission has not fulfilled the private creditor test to establish the existence of State aid (Buczek Automotive), 21 March 2013, Concurrences N° 2-2013, Art. N° 52077, p. 128

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