The European Commission has given the green light to the 150 euro bridge loan from the German government to Air Berlin in order to allow "the orderly closure of the insolvent company without distorting competition in the single market".
The EU Antitrust reveals it. The dg competition explains in a note that: “the objective of the loan is to allow the operation of Air Berlin in the coming months while the negotiations for the sale of the assets are conducted. At the end of the process, Air Berlin will have to cease operations and exit the market".
However, Brussels recalled that "rescues and restructuring are the types of aid that most distort competition". The loan must therefore be paid in installments and meet tough conditions. In detail, Air Berlin will have the obligation to demonstrate its liquidity needs on a weekly basis and new tranches will be paid when the previous liquidity is exhausted. It also provides for the full repayment of the loan and the presentation of a closure plan of the company by the Government.
