Howrey Successfully Advises The Hellenic Republic In Securing The European Commission's Approval of State Aid To Olympic Catering S.A.

Howrey LLP announced today that it has successfully advised the Hellenic Republic in securing the approval of the European Commission with regard to the grant of State aid to Olympic Catering S.A. in the amount of EUR 29 million.

The approved aid will enable Olympic Catering to face the substantial reduction in its revenues and activities resulting from the recent changes in the Greek aviation market and the Olympic Airlines assets’ privatisation process (see Howrey press release dated September 30, 2009).

As part of a general cost reduction exercise, the scheme incentivizes certain members of Olympic Catering staff, who benefit from a special employment status, to retire earlier by offering them a Voluntary Retirement Scheme (the “VRS”).  The Hellenic Republic has agreed to partially contribute to the overall cost of Olympic Catering’s VRS.  A fundamental condition to these proposed State contributions was that they fully complied with the EC rules on State aid. 

Drawing from their experience gained from their earlier and successful involvement in the OTE case (see Howrey press release dated May 10, 2007), Howrey LLP advised the Hellenic Republic in the drafting of the State aid notification and negotiated the details of the proposed contribution with the European Commission to ease the approval process.  As a result, on October 14, 2009, the European Commission agreed to authorize the full amount of proposed State aid, namely EUR 29 million, as compatible aid.

Paris Anestis, the Brussels-based Howrey partner in charge of the case, said:  “We are glad that we managed to address a significant side-effect and the negative repercussions that the recent restructuring of the Greek aviation market would have on Olympic Catering, which is a private company since 2002.   The approved measure represents a fair and balanced solution to the problem arisen and is in full conformity with EC state aid law”.  

Team of advisors

The Howrey team was led by partner Paris Anestis supported by partner Julie Gabler and associates Louise Rabeux, Dimitri Vallindas and Marixenia Davilla in Brussels.

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