Brussels, 17/08/2005 (Agence Europe) - The European Commission has opened a formal investigation into restructuring aid for KG Holding (the company specialises in the provision of reintegration services on the Dutch labour market in the Netherlands). The Commission seriously doubts that the planned assistance, which would take the form of transforming a state-granted €45 million rescue loan into equity capital by the State is authorised. Such restructuring aid should be granted on the basis of a specific restructuring plan that should provide for a turnaround enabling the company to compete in the marketplace on its own merits. However, the Dutch authorities informed the Commission that in February 2005, Kliq Holding N V had been declared bankrupt. Therefore, the Commission takes note that the required turnaround foreseen according to the restructuring plan has failed to materialise, and considers that the long-term viability of Kliq can no longer be restored by the present or any modified restructuring plan. The investigation will further probe these issues.