European Commission authorizes French State aid package for the rescue of troubled PSA Peugeot Citroën group.
On February 11, the European Commission approved a State aid rescue package for the troubled PSA Peugeot Citroën group in the form of a temporary guarantee that the French State will grant to Banque PSA Finance, the group’s financial services entity. This State guarantee is capped at €1.2 billion and will allow Banque PSA Finance to issue, within a six-month period, notes with a maximum maturity of 36 months. Upon execution of the agreement between PSA, Banque PSA Finance and the French State, Banque PSA Finance will be permitted to refinance new loan production at a volume sufficient to support the automobile sales of the PSA group.
The matter was handled by partner Jacques-Philippe Gunther, special European counsel Adrien Giraud and associate Dounia Ababou (competition law), and partner Fabrice Cohen and special European counsel Gabriel Flandin (corporate/financing).