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The German Federal Administrative Court rules that a recovery decision may also be addressed under certain conditions against a third party who is not the direct aid recipient as specified in the funding decision

The Federal Administrative Court (Bundesverwaltungsgericht) ruled that if a funding decision obliges its addressee to forward the funding to a third party in accordance with its intended purpose and to provide a corresponding declaration of commitment, a withdrawal decision ordering the recovery of unlawful State aid may also be directed against such third party as (indirect) beneficiary of the aid. Background & facts of the case The Applicant is the legal successor of company B. The administrator in bankruptcy of U., lawyer Dr. G., had founded B. in 1984 as a rescue company in order to be able to continue the viable parts of U. During subsequent takeover negotiations, K. made the acquisition of B. dependent on its equity capital being increased by DEM 2 million through a state

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Auteurs

  • Gleiss Lutz (Brussels)
  • Jones Day (Brussels)
  • Gleiss Lutz (Brussels)

Citation

Ulrich Soltész, Philipp Werner, Harald Weiss, The German Federal Administrative Court rules that a recovery decision may also be addressed under certain conditions against a third party who is not the direct aid recipient as specified in the funding decision, 26 août 1999, e-Competitions August 1999, Art. N° 108709

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