CASE COMMENTS : STATE AID – RESTRUCTURING AID – RECOVERY OF PUBLIC DEBTS – RECOVERY DECISION – NOTION OF STATE AID – CRITERION OF THE PRIVATE CREDITOR

Criterion of the private creditor: The General Court annuls a Commission decision ordering the recovery of a State aid declared incompatible, in ruling that the decision violates the notion of State aid in stating that a private creditor would have opted, in the circumstances of the case, for an insolvency procedure rather than recovery measures of the debts at stake and does not state reasons for the application of the conditions of interstate effect and distortion of competition (Buczek Automotive)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Trib. EU, 17 May 2011, Buczek Automotive v Commission, Case T-1/08 This case takes place in the context of the steel restructuring programme initiated by the Polish authorities in the early 2000s and approved in 2003 by Protocol No 8 to the Act concerning the conditions of accession of Poland to the European Union. The annotated judgment does not in fact concern the question of the compatibility of restructuring aid as the discussion was limited to the very existence of such aid, the judgment being relevant to the strict application of the hypothetical private creditor test for determining the existence of State aid. The Court of First Instance also

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  • Sheppard, Mullin, Richter & Hampton (Brussels)

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Jacques Derenne, Criterion of the private creditor: The General Court annuls a Commission decision ordering the recovery of a State aid declared incompatible, in ruling that the decision violates the notion of State aid in stating that a private creditor would have opted, in the circumstances of the case, for an insolvency procedure rather than recovery measures of the debts at stake and does not state reasons for the application of the conditions of interstate effect and distortion of competition (Buczek Automotive), 17 May 2011, Concurrences N° 3-2011, Art. N° 37945, pp. 166-169

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