EU to investigate Huta Czestochowa concerning state aid

EU to investigate Huta Czestochowa concerning state aid

According to reports from the industry European Commission is going to commence an investigation involving Poland's second largest steel mill Huta Czestochowa (HCz) in line with arguments that Poland granted state aid contrary to EU regulations. The investigation, which was declared the day before Poland's accession to EU, is expected to start within one or two weeks. Hence, Polish government decided to cancel privatization of the mill due to concerns about the investigation. Last Friday LNM Holdings NV declared that cancellation of privatization of HCz upset them, adding that further delays may cause to the Polish mill's bankruptcy. Back in February this year, LNM was selected as preferred bidder and subsequently made certain required agreements with majority creditors and trade unions.