Brussels, 2 July 2013
State aid: Commission temporarily approves rescue aid for Cimos Group
The European Commission has concluded that a state guarantee of €35 million to be granted by the Slovenian government to Cimos Group is in line with EU state aid rules. The Commission found, in particular, that the aid is limited in time and scope. The Commission has approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Slovenia by 21 November 2013.
Slovenia intends to grant a guarantee for a €35 million loan that a number of banks have recently provided to the Slovenian manufacturer of automotive components Cimos Group to enable it to overcome its current liquidity problems and to gain time for preparing a full-scale restructuring plan.
The Commission found the measure to be in line with its guidelines on the rescue and restructuring of companies in difficulties. In particular, the aid amount is limited to what is needed to keep the company in business over the next six months. Moreover, the Slovenian authorities have committed to submit a restructuring plan aimed at ensuring the future viability of Cimos Group.
Cimos Group is a major Slovenian manufacturing company (employing close to 7,000 people) whose main area of activity is the production of automotive components. The Group is currently in serious financial difficulties due to a shortage of working capital and high borrowings combined with a sluggish demand for new cars.
Under the EU guidelines on state aid for rescue and restructuring, companies in difficulty may receive state aid under certain conditions. Aid may be granted for a period of 6 months ("rescue aid"). Beyond this period, the aid must either be reimbursed or a restructuring plan must be notified to the Commission for the aid to be approved ("restructuring aid"). The plan must ensure that the viability of the company is restored without further state support, that the company contributes to an adequate level to the costs of its restructuring and that distortions of competition created by the aid are addressed through compensatory measures.
The non-confidential version of the decision will be made available under the case number SA.36548 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.