ARTICLE
13 August 2019

The European Courts Recognize Creditors' Interests In State Aid Decisions

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
This may now provide a plausible route for creditors to attack State aid approvals of bank resolution, something that has been very difficult to date.
European Union Finance and Banking

In this article we examine a recent landmark case where the European Court of Justice recognized that if a creditor challenges a national banking resolution process on the grounds that it has suffered damage, it should also have legal standing to bring a case against the relevant State aid decision as these processes are inextricably linked.

This may now provide a plausible route for creditors to attack State aid approvals of bank resolution, something that has been very difficult to date — despite the extraordinary damage that such decisions do to creditors.

Read this chapter in Shearman & Sterling's 2019 Antitrust Annual Report, "The European Courts Recognize Creditors' Interests in State Aid Decisions."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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