DZP has advised Polskie Linie Lotnicze LOT S.A. in obtaining a positive European Commission decision approving state aid of PLN 2.9 billion and in documentation concerning recapitalisation of the Company and raising the debt financing specified in the decision. The EC found the aid aimed at mitigating the adverse effects of the COVID-19 pandemic as compliant with EU rules.
Following intensive talks over many weeks, the state aid to PLL LOT was approved by the EC on 22 December 2020. In the near future, PLL LOT will be recapitalised by the State Treasury to the tune of approx. PLN 1.1 billion, while PFR SA will grant it a loan of PLN 1.8 billion.
“Today's EC decision is extremely important for our client. During the crisis caused by the COVID-19 pandemic, the air transport sector has been particularly affected, especially by the introduction by states of restrictions and bans. The importance of the problem was acknowledged by the EC, which introduced special criteria for providing state aid to mitigate the effects of the COVID-19 pandemic. Thanks to these new, temporary regulations, PLL LOT was able to apply for state financial support and obtain a positive EC decision.” said Anna Glapa, Partner in the Infrastructure & Energy Practice.
DZP's advice was provided during preparation of the documentation submitted to the Ministry of State Assets and of the pre-notification and notification application during the proceedings before the European Commission, the Company's recapitalisation process, and arrangement of documentation for debt financing from PFR S.A..
The project was carried out by a multidisciplinary team led by DZP Partners: Anna Glapa and Marcin Krakowiak, supported in particular by Magdalena Skowrońska, Partner and Marek Świątkowski, Partner and the following experts: Katarzyna Biarda, Joanna Fasula, Aneta Włosek and Tomasz Zielenkiewicz.