BRUSSELS, June 8 (Reuters) - The European Commission said on Monday it had approved 97 million euros ($107.9 million) in restructuring aid given by Slovenia to car parts maker Cimos Group
“The Commission found that Cimos’s restructuring plan will allow the company to become viable again in the long-term without needing further state support, and without unduly distorting competition in the single market,” the Commission said in a statement.
Cimos has been in financial difficulties due to high bank debt that it was unable to repay. In July 2013, the Commission approved temporary rescue aid of 35 million euros.
In October 2014, Cimos’s creditors reached an agreement under a compulsory settlement procedure in which Cimos’s debt was restructured through a debt-for-equity conversion and an extension of the repayment period. Cimos has also agreed to reduce its production capacity. ($1 = 0.8990 euros) (Reporting By Philip Blenkinsop; editing by Robert-Jan Bartunek)