EU Probes Italy's €300M Loan To Alitalia

Law360, New York (June 11, 2008, 12:00 AM EDT) -- The European Commission has decided to investigate Italy's €300 million ($465 million) emergency loan to help keep Alitalia SpA afloat to see if it runs afoul of European Union laws that prevent illegal and anti-competitive state aid.

“At this stage, the commission believes that the loan — which the Italian company has the option of incorporating into its equity capital — could constitute aid that is incompatible with the common market,” the EC said on Wednesday.

Since Alitalia has already benefited from rescue and restructuring aid,...
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