The Slovenia Times

EU Court Rejects Suspension of Elan Repayment


The State Solicitor General confirmed for the STA on Monday the office received last week the decision from the EGC not to suspend the return of the funds, as the statutory conditions for the suspension were not fulfilled.

The relevant institutions and state-owned providers of the injection have not revealed any further information about the reclaim, and it remains unclear whether they would actually initiate procedures.

However, if the contested injection is not returned, the European Commission may take Slovenia to the EU Court of Justice, which may set a daily damages until the obligation is fulfilled.

An investigation into the injection, which was launched by the Commission in May 2010, found that while the state had majority stakes in all Elan's shareholders at the time, a private company operating under market conditions would not have agreed to the 2008 investment.

Since the injection qualified as state aid, according to the Commission, the company was expected to follow the EU guidelines and adopt appropriate measures to reduce the impact on the competitive balance on the EU market, but Elan failed to do so.

In mid-January, Elan also filed a request to suspend the repayment, for which it would need another capital injection, which is expected from the new owner of the company after its sale has been finalised.

Procedures for the sale of Elan have been going on for two years and a letter of intent was signed last week with British investment fund Argus Capital, while the contract is expected to be signed by the end of April and the sale finalised by June.


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