IP/08/136
Brussels, 31 January 2008
State aid: Commission authorises €5.2 million restructuring aid for Spanish catering company Vanyera 3 The European Commission has authorised, under EC Treaty state aid rules, restructuring aid amounting to €5.2 million, in the form of a guarantee, that the regional government of the Canary Islands intends to grant to the catering company Vanyera 3. After a revision of the restructuring plan to ensure the company's return to long-term viability and to establish compensatory measures limiting the distortion of competition, the Commission found the aid compatible with EC Treaty state aid rules. Competition Commissioner Neelie Kroes said: "The Commission is satisfied that the aid will ensure the long-term viability of Vanyera 3 without unduly distorting competition."
Since 2003, Vanyera 3 has closed its accounts for all business years with losses due to serious liquidity problems. In June 2007 Spain informed the Commission about the intention to grant restructuring aid to Vanyera 3 a company active in the sector of catering services in the Canary Islands. The aid proposed by Spain concerns a €5.2 million guarantee from the regional government of the Canary Islands, in support of a bank credit.
The Commission checked that the planned aid complied with the 2004 Community Guidelines on rescue and restructuring aid (see MEMO/04/172), which allow aid to restore the long-term viability of companies in difficulty provided competition is not unduly distorted.
To meet the requirements of the Guidelines, Spain revised the original restructuring plan. The new plan ensures in particular that the company's long-term viability will be restored through closing inefficient business lines and focussing Vanyera's activity on hotel services. Delivering services to hotels is envisaged to be profitable as this activity is seen as the main opportunity for turnover growth, due to the significant number of tourists visiting the island every year. Moreover, the Spanish authorities agreed to impose compensatory measures on the beneficiary, who committed to abandon part of its profitable business lines and to reduce its market presence. The Commission took into consideration the regional, limited character of the market at stake, as well as its remote location.
The non-confidential version of the decision will be made available under the case number N 323 /2007 in the State aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.
