The European Commission believes that a write-off of the 150 million that Tubos Reunidos owes to Sepi would violate community regulations. The decision affects the bids submitted in the contest for the Basque steelmaker.
The European Commission concludes in a report dated September 28 that Sepi cannot reduce Tubos Reunidos' debt without infringing EU law. According to EL CORREO, the document was requested by the State Attorney's Office on behalf of Sepi to explore a write-off of the 150 million rescue granted in 2022 from the FASEE fund.
The report is not a definitive resolution, although it does express Brussels' stance on the group's situation. It reminds that the obligation to repay the aid granted under the COVID-19 Temporary Framework is mandatory for the Spanish state and its administrations.
According to the Commission, any modification of the credit would fall under the state aid regime and would be outside the law if not processed with prior consultation and authorization. Furthermore, a purchase of the company or part of its businesses does not eliminate the new owner's joint obligation to repay those aids.
“the substantial modification or cancellation of an existing aid could in itself constitute new aid subject to notification to the Commission”
On October 5, the State Attorney's Office sent the conclusions to Judge María Teresa Trinidad, head of the 7th Instance Court of Vitoria overseeing the bankruptcy proceedings. The state lawyer warns that endorsing the transfer of the productive unit without maintaining the full repayment obligation would constitute a violation of European law and requests an extension of the deadlines by at least one month.
The bankruptcy administrator, PKF Attest, selected five bids that include a write-off of the debt with Sepi. Three of them, including those from Sidenor and an Indian group, also include Amurrio as well as Trapagaran. The other two are limited to the Bizkaia plant. All propose cuts to the workforce and working conditions.
The bankruptcy administrator met with the unions and admitted that the salaries for November and December are not secured.
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