On 17 May 2011, the GC annulled a Commission decision requiring recovery of state aid from Polish steel producer Technologie Buczek (TB). The case concerned the actions taken by the Polish authorities in implementing a plan to restructure the steel industry. The GC found that the Commission had been correct to find that TB had benefited from a decision by the Polish authorities not to apply for bankruptcy but to allow the company to continue to operate without repaying its debts. However, the Court went on to conclude that the Commission had failed to demonstrate that in taking a decision not to file for bankruptcy, the Polish authorities had not acted like a private creditor would have done in comparable circumstances. The Court held that there was no obligation on public authorities to recover debts using all means available to them if there were other options. The Commission failed to provide evidence that recovery following restructuring in 2004 would have been less than that recovered through liquidating the company.
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Decision not to declare steel company bankrupt was not state aid says General Court
- Nabarro LLP
- Cyrus Mehta, Brian Sher and Rachel Bickler
- European Union, Poland
- May 31 2011
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Contracts Manager
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