CASE COMMENTS: STATE AIDS – PRIVATE MARKET INVESTOR TEST – RIGHTS OF DEFENCE

Insolvency procedure: The General Court of the European Union rules that the European Commission did not carry out a sufficiently diligent examination of the possible willingness of a private creditor to accept a settlement of its claims in the contest of an insolvency procedure (Frucona Kosice / Commission)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The Court of First Instance had to re-examine a composition agreement accepted in 2004 by the Slovak tax authorities and approved by a national court, which the Commission had classified as state aid incompatible with the internal market and ordered to be recovered. In particular, the Commission took the view that a market economy private creditor would not have accepted such an arrangement (which would have led to a reimbursement of only 35 % of the tax debts of Frucona Kosice) and would have preferred a liquidation of the company. At the very least, it would have been more advantageous for the tax administration to use the tax enforcement procedure than

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

  • European Commission - Legal Service (Brussels)

Quotation

Bruno Stromsky, Insolvency procedure: The General Court of the European Union rules that the European Commission did not carry out a sufficiently diligent examination of the possible willingness of a private creditor to accept a settlement of its claims in the contest of an insolvency procedure (Frucona Kosice / Commission) , 16 March 2016, Concurrences N° 2-2016, Art. N° 78987, pp. 166-169

Visites 193

All reviews