Latest

Tosama Sues State After Govt Revokes State Aid

Ljubljana, 04 May (STA) - Tosama, a maker of medical supplies, is suing the state after the government revoked the decision of the previous government to grant it EUR 1.5m in restructuring aid and a further EUR 4m in state guarantees.

 

The suit has been confirmed in a press release following Thursday's

correspondence session at which the government crafted a reply to Tosama's

action.

Tosama was granted state aid at one of the last sessions of

the Borut Pahor government in February.

At the time the decision

outraged People's Party (SLS) president, who would become minister of

economic development and technology in the new government.

The

decision on state aid was revoked in late March, with the government

arguing that the company got into trouble primarily because of debt that is

a consequence of a leveraged buyout carried out in 2008.

The ministry

proposed that the government not grant state aid for bailing out or

restructuring companies in which leveraged buyouts were carried out within

four years prior to their application for state aid.