EC approves TV2 rescue package

Pubcaster to get government credit facility

By IAN MUNDELL

BRUSSELS — European regulators have approved a government credit facility for ailing Danish pubcaster TV2 Danmark. The credit is restricted to the minimum needed to keep the company afloat, and will be supervised by an independent accounting firm.

TV2 Danmark has seen deteriorating operating results and liquidity problems this year. Emergency measures implemented by management in January and April failed to generate sufficient cash-flow, so the government stepped in.

The rescue package applies to the chain's public service activities and its commercial channels, such as TV2 Zulu, TV2 Charlie and TV2 Sports. This means it falls under EU rules for commercial rescue aid.

A restructuring plan designed to restore the company's long term viability must be submitted to the European Commission within the next six months, or proof that the credit has been paid back in full.

In 2004 TV2 Danmark was made to give back around $132 million in state subsidy, plus interest, that the Commission judged had been paid for activities outside its public service mission.