The EU Commission applies the market economy investor test to a financially troubled company (Scandinavian Airlines)

The Market Economy Investor Test Applied to a Financially Troubled Company* Main points Public funding of an undertaking is free of State aid when it is accompanied at the same time and on equivalent terms by similar private funding. If public funding is provided at the insistence of the private investors, it cannot be considered to be “pari passu” with the private participation. Public funding into a financially troubled company can still be free of State aid, if the recipient of the funds has a reasonable prospect to return to financial viability. A private investor who is already a shareholder in a company must also consider the option of liquidating its holding or closing down the company. Introduction The European Commission recently decided that a “revolving credit facility”