PART 2Subsidy control requirements
CHAPTER 2Prohibitions and other requirements
Ailing or insolvent enterprises
I1I219Rescuing
1
A subsidy for rescuing an ailing or insolvent enterprise is prohibited by this section unless the conditions in subsections (2) to (4) are met.
2
The condition in this subsection is that the subsidy is given during the preparation by the enterprise of a restructuring plan for the purposes of section 20(2).
3
The condition in this subsection is that the subsidy consists of temporary liquidity support in the form of a loan or loan guarantee.
4
The condition in this subsection is that the public authority giving the subsidy is satisfied that—
a
the subsidy contributes to an objective of public interest by avoiding social hardship or preventing a severe market failure, in particular with regard to job losses or disruption of an important service that is difficult to replicate, or
b
there are exceptional circumstances that justify the subsidy being given despite its not contributing as mentioned in paragraph (a).
5
This section does not apply to a subsidy for rescuing an ailing or insolvent enterprise that is a deposit taker or insurance company.