EC ALLOWS FINANCIAL HELP TO STRUGGLING CARGOLIFTER

EC ALLOWS FINANCIAL HELP TO STRUGGLING CARGOLIFTER    The European Commission has approved the payment of a 4 million euro (about $4 million) rescue loan by the German state of Brandenbourg to CargoLifter AG, the German heavylift airship venture.
   Active in the development, construction and marketing of large airships for the worldwide transportation of large and heavy goods, CargoLifter and its subsidiaries filed for bankruptcy in June. The company was in serious financial difficulties, the EC reported.
   Also in June, the state of Brandenburg, where CargoLifter is based, granted the rescue loan to the company through its development bank, ILB.
   “The Commission examined the rescue aid under the European guidelines on aid for rescuing and restructuring firms in difficulty,” the EC said.
   Under these guidelines the EC can approve rescue aid as one-off support to an ailing firm during the period needed to devise a restructuring or a liquidation plan. The financial aid must also be set at the strict minimum to keep the firm in business during a maximum period of six months.
   “Since the rescue aid fulfils the conditions set out in these guidelines, the Commission considers that it is compatible and has authorized the loan for a period of six months,” the Brussels body said.