Brussels, 04/08/2008 (Agence Europe) - On Monday 4 August 2008, the European Commission authorised a credit facility granted by the Danish Ministry of Culture to support TV 2 Danmark AS. It concluded that the credit facility, which addresses the company's cash flow problems, constitutes rescue aid in line with the EU rules on state aid to companies in difficulty.
EU Competition Commissioner Neelie Kroes said: “Public broadcasting is a service of general interest that contributes to public information, democratic debate and cultural objectives in Europe. The rescue aid will enable TV 2 Danmark to continue its activities in the immediate future. I look forward to examining in due time measures that would ensure its long term viability”.
In the course of 2008, TV2 Danmark A/S (wholly owned by the Danish state) experienced a deterioration of its operating results and liquidity problems. The Ministry of Culture, authorised by the parliament, therefore plans to provide a credit facility to TV2 Danmark A/S. In line with the Commission state aid guidelines, draw-downs on the credit are restricted to the minimum necessary to keep the company afloat and must be limited in time and amount. The Danish authorities have given a commitment to submit in six months a restructuring plan or proof that the credit has been reimbursed in full.
TV2 Danmark A/S operates the public television channel TV2 as well as a number of commercial channels including TV2 Zulu, TV2 Charlie and a news sport television channel TV2 Sports. (C.D. /transl fl)