Brussels, 11/10/2011 (Agence Europe) - On Monday 10 October, the European Commission temporarily approved Danish public support to facilitate the sale of part of Max Bank, a small bank active primarily in southern and western parts of Zealand, Denmark. The bank reported significant impairment losses on loans and advances and, as a result, the Danish financial regulator considered it necessary to bail out the bank. Thus, the bank will be divided into a good part and a bad part. The good part will be sold to an acquiring bank, Sparekassen Sjaelland, while the bad bank will be wound down. This will be made possible by the provision of cash or guarantees from the Financial Stability Corporation (FSC), a Danish state-owned winding-up company, and the Guarantee Fund for Depositors and Investors. The Commission agrees that the measures accompanying the sale of Max Bank are necessary to preserve the stability of the Danish financial system. Nonetheless, the Commission's final approval is conditional on the presentation, within six months, of a restructuring plan that shows the integrated entity is viable and that the aid is limited to a strict minimum. The bank's shareholders have lost their investment in the sales process. (FG/transl.jl)