The European Commission has approved (under the State Aid regime) measures taken to facilitate the restructuring of Dunfermline Building Society. After the business encountered major financial difficulties, the UK Government intervened to facilitate an approved restructuring plan under which the building society’s impaired assets were split from its profitable business and put into administration. The remaining assets and liabilities meanwhile were sold at auction to Nationwide Building Society, with the State contributing over £1.5 billion to the sale. The Government also provided a working capital loan to Dunfermline in administration to meet pre-administration contractual obligations. The Commission concluded that the orderly split-up of the company, its auction and the burden-sharing by subordinated debt-holders to the restructuring helped limit any potential distortion of competition.