Brussels approves Arcandor rescue aid

The European Commission gave quick approval on the 30 June 2009 to a German state loan for Arcandor after the German government late on the 29 June 2009 agreed to join the states of Bavaria and Saxony in providing the insolvent retailer with €50m in six-month financing.

The European Union approved the loan for the Quelle catalogue business of Arcandor unit Primondo as a temporary 'rescue aid' measure under its normal state aid rules.

This means the retailer will have to come up with a more fundamental restructuring plan if the assistance lasts beyond six months.

The loan ends days of uncertainty that could have forced Arcandor to close large parts of its mail-order subsidiary and give up hopes of restructuring.

European Commission: Press Release: IP/09/1062: State aid: Commission approves €50 million rescue aid loan to German retailer Quelle http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1062&format=DOC&aged=0&language=EN&guiLanguage=en

ESO: Background information: Arcandor in fresh request for state aid http://www.europeansources.info/record/arcandor-in-fresh-request-for-state-aid/

Deutsche Welle, 30.6.09: EU Commission approves state aid for Germany's Quelle http://www.dw-world.de/dw/article/0,,4442884,00.html

Spiegel Online International, 30.6.09: Quelle Gets 50 Million Euros in State Aid http://www.spiegel.de/international/business/0,1518,633449,00.html

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