EUROPEAN COMMISSION

Brussels, 04.VIII.2008 C(2008)4224 final

In the published version of this decision, some information PUBLIC VERSION has been omitted, pursuant to articles 24 and 25 of Council Regulation (EC) No 659/1999 of 22 March 1999 laying WORKING LANGUAGE down detailed rules for the application of Article 93 of the EC Treaty, concerning non-disclosure of information This document is made available for covered by professional secrecy. The omissions are information purposes only. shown thus […].

Subject: N 287/2008 - Denmark Rescue aid to TV2 Danmark A/S

I am pleased to inform you that the European Commission has assessed the Rescue aid to TV2 Danmark A/S notified by the Danish authorities and decided to consider the aid to be compatible with the EC Treaty. I. PROCEDURE

(1) By letter registered on 16 June 2008, the Danish authorities notified to the Commission, pursuant to Article 88 (3) of the EC Treaty, their intention to grant a state loan to TV2 Danmark A/S as rescue aid for a firm in difficulty. Further information and documents were submitted thereafter by the Danish authorities, ultimately, on 18 July 2008.

II. CONTEXT

The activities of TV2 Danmark A/S

(2) TV2 Danmark A/S is the parent company of the TV 2 Group, which has interests in twenty different companies involving fully owned subsidiaries, associates, joint ventures and minority holdings. TV2 Danmark A/S operates the public television channel TV 2 as well as a number of commercial channels including TV2 Zulu, TV2

Udenrigsminister Per Stig MØLLER Asiatisk Plads 2 DK - 1448 København K

Commission européenne, B-1049 Bruxelles – Belgique - Europese Commissie, B-1049 Brussel – België Telefon: 00-32-(0)2-299.11.11.

Charlie and a news sport television channel TV2 Sports. TV2 Danmark A/S activities are nearly exclusively focused on the TV broadcasting market and other media-related markets in Denmark, where TV2 Danmark A/S channel TV 2 and Danmarks Radio are the largest public service broadcasters. However, through its subsidiaries, TV2 Danmark A/S acquires and sells audiovisual rights on international markets (e.g. Euro 2008 or Olympic games) which it can broadcast itself or resell, in competition with other competitors broadcasters in Denmark. It also advertises, in competition with them, products from other Member States intended for sale in Denmark.

(3) In that Member State, TV2 Danmark A/S competes with other undertakings in the provision of broadcasting and media-related services, such as DR, a public undertaking which is exclusively financed by a licence fee and operates two public service channels; Viasat, which is owned by Swedish Modern Times Group A/S; SBS A/S, which is owned by German ProSiebenSat; and Discovery. The combined viewers' market share of TV2 and DR in 2007 was around 72%, TV2 having around 40% of the viewers' market.

(4) TV2 Danmark A/S was incorporated in 2003 as a private limited liability company wholly owned by the Danish State. The company took over the activities of the autonomous public institution TV 2, which was created in 1986. The public support to the activities of TV2 prior to the incorporation and subsequent recapitalisation of TV2 Danmark A/S were the object of, respectively, Commission decisions of 19 May 2004 and of 2 February 2005. The former decision mandated the recovery of incompatible aid to TV2 whilst the latter raised no objections on the compatibility with the common market of the recapitalisation consisting of a capital injection of DKK 440 million and a further debt-equity swap of DKK 394 million1. Both decisions are the object of applications for annulment before the Court of First Instance, which are still pending.

(5) According to the Danish Broadcasting Act, the overall public service broadcasting activities in Denmark shall - via television, radio and the internet or similar media - provide the Danish population with a wide selection of programmes and services comprising news coverage, general information, education, art and entertainment. The range of programmes provided must aim at quality, versatility and diversity. Freedom of information and expression shall be a primary concern in the planning of programmes, and the coverage of information must be objective and impartial. Programming shall ensure that the general public has access to important information on society and public debate. Furthermore, particular emphasis is placed on Danish language and culture. Programming shall cover all genres in the production of art and culture and provide programmes that reflect the diversity of cultural interests in Danish society.

(6) The Danish authorities state that, according to its licence, which is valid until the end of 2013, TV2 Danmark A/S is obliged to respect the above mentioned requirements on its public service channel, TV 2. Besides, the public service licence lays down specific obligations:

1 Commission Decisions 2005/217/EC, OJ EU L 85 of 23.3.2006, p. 1-21 and case N 313/2004, OJ EU C 172 of 12.7.2005, p.3. 2

− Obligation to broadcast a certain amount of news programmes, including an obligation to broadcast at least one main news programme in prime time. As a general rule, the news programmes must be produced in-house.

− Obligation to purchase –as a general rule- other programmes than news programmes from external producers until the end of 2008.

− Obligation to broadcast a certain amount of high quality programmes for children.

− Obligations regarding the purchase of Danish films.

− Obligations regarding broadcasting services for disabled people.

− Obligation to make slots available on TV 2 for regional programmes from regional public service broadcasters according to mutual agreements.

− Obligation to broadcast TV 2 on free-to-air basis.

The deterioration of TV2 Danmark A/S financial situation in 2008

(7) According to the Danish authorities, during 2008, TV2 Danmark A/S has experienced serious liquidity problems as a result of a combination of four factors in 2007-8, namely the cash-flow effects of heavy investments initiated in 2005 and 2006 which i) have not performed as expected, in particular as to radio activities from TV2 Radio A/S, ii) have performed as expected or better but have not realised yet their revenue potential, iii) lower than expected advertising revenues and iv) increased interest charges.

(8) These financial difficulties are evidenced by losses before tax and negative net cash flow worth respectively DKK 213 million and DKK 550 million incurred in 2007 and expectations of losses and negative net cash flow worth DKK […]∗ and DKK […] for 2008. Further evidence stems from an expected reduction of the net assets value from DKK […] to DKK […] between 2006 and 2008 and a decrease by […]% of the company's turnover between 2007 and 2008.

Initiatives taken to address the liquidity problems

(9) Faced with these difficulties, the management of TV2 Danmark A/S introduced cost saving measures in January and April 2008 consisting of a 20% staff reduction, a divestiture of its majority interest in radio activities and a reduction or postponement of investments, with limited liquidity effects expected in 2008, however.

(10) In parallel, the management of TV2 Danmark A/S tried to secure additional external funding from their regular bankers, but this attempt failed by mid-May 2008. The main reasons reported by the Danish authorities were the concerns about the long-term financial viability of the public service channel given the recent decline in audience and advertising and the switch to digital terrestrial television in 2009, as well as the

∗ Business secret 3

uncertainty regarding the outcome of the pending court cases on the compatibility with the common market of state aid granted to the company in the past. Discussions with other banks in view of obtaining finance have also failed, for the same reasons.

(11) The company turned then to the Ministry of Culture, which instructed independent auditors to review the prospective cash flow budgets for 2008 prepared by TV2 Danmark A/S. On 13 June 2008, PriceWaterhouseCoopers assessed in a report to the Danish Ministry of Culture the liquidity needs of TV2 Danmark A/S for 2008. The conclusion drawn by PriceWaterhouseCoopers, subject to the necessary caveats as to the occurrence of subsequent events and deviations from assumptions, is that it would be necessary for TV2 Danmark A/S to obtain a significant amount of funding to meet its short term cash flow needs.

III. DESCRIPTION OF THE MEASURE

(12) On that basis, the Ministry of Culture obtained the approval of the Ministry of Finance to table to the Danish Parliament a request for approval (Aktstykke) of the notified measure.

Substantive elements of the measure

(13) The legal basis of the measure is the Aktstykke approved on 23 June 2008 by the Finance Committee of Parliament (Folketinget) for inclusion in the supplementary appropriations act 2008. The Aktstykke authorises the Minister of Culture to give TV2 Danmark A/S access to loans covering the company's liquidity needs in the form of relending of State loans from the National Bank, with a maximum limit of DKK […]. According to the Danish authorities, the need to provide contingence for unforeseen events in a worst case scenario led the Danish authorities to decide on that ceiling for the amount of credit facility to TV2 Danmark A/S.

(14) Following the approval of the Danish Parliament, the company and the Ministry of Culture entered into a loan agreement. Under the terms of the agreement, the Ministry provides a credit facility for the amount of DKK […] agreed by the Folketinget. The loan will bear interest at […]. That margin is reportedly the one which the company banks apply to TV2 Danmark A/S current overdraft facilities. It should be noted that the latter margin was recently increased by […] as a result of a down rating of the company due to its financial difficulties.

(15) The use of the credit facility by TV2 Danmark A/S is not unconditional. The credit facility provided in the loan agreement must be used exclusively to cover the liquidity needs arising out of the present activities of TV2 Danmark A/S (or its subsidiaries), as estimated in the prospective monthly cash flow budget for 2008 reviewed by an independent accounting firm and annexed to the agreement and expressly excluding new activities and aggressive behaviour in commercial markets.

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(16) The prospective monthly cash flow budget included in the agreement records a total cash flow need of DKK […] for 2008, broken down per month. The difference between the total limit of the credit facility of DKK […] and the liquidity budget annexed to the agreement, i.e. DKK […], constitutes a safety margin allowing to cover higher needs than foreseen in the prospective budget. In particular, the maximum limit is an estimated figure intended to address a worst case scenario which, apart from the cancellation of current banking facilities, could also cater for a decrease of advertising revenue or other possible events, e.g. payments due to litigation on audiovisual rights.

(17) Draw downs by TV2 Danmark A/S can only be made in accordance with special conditions set out in the agreement, summarised as follows. The firm PriceWaterhouseCoopers is mandated to act as the independent accounting firm under the terms of the loan agreement. TV 2 Danmark A/S must, one week before the beginning of a new month, inform the independent accounting firm of its expected liquidity needs for the upcoming month. Any deviations from the 2008 liquidity budget annexed to the agreement must be motivated. The independent accounting firm shall inform the Ministry of Culture of the planned draw on the loan for the coming month and whether it meets the terms of the loan agreement, in particular whether it is limited to what is necessary to carry on current activities,. A draw on the loan must be authorised by the Ministry of Culture and may not exceed the amount that the independent accounting firm has deemed necessary to cover TV Danmark A/S liquidity needs. Where liquidity needs exceed the sum drawn in a given month, for instance, in case advertising revenues fell sharper than expected, requests for increase must also be assessed by the accounting firm as to the above aspects. Conversely, should the amount drawn in one month prove to exceed the company's liquidity needs, the remaining amount will be taken into account for future liquidity needs.

(18) The loan can be terminated at any time as it has no specific date of termination. No later than one month before the end of 2008, a cash budget for the next six month period must be established and reviewed by the accounting firm as to compliance with the exclusive use of supporting the present activities of TV2 Danmark A/S to which the funds must be put. Draw downs must be subject to the procedure summarised above.

Other elements and pledges of the Danish authorities

(19) The Danish authorities stress that a bankruptcy of TV2 Danmark A/S would raise serious difficulties beyond the interest of the company and its nearly 1 050 employees:

− TV2 channel is of major importance to the Danish population as it supports Danish language, culture, democratic debate and high quality programming.

− Eight regional public service broadcasters employing more than 600 full-time people transmit their programmes, which are particularly popular, in slots on TV2's main channel.

− TV2 Danmark A/S main channel TV2 is obliged to purchase other programmes than news programmes from external producers, whilst acting as buyer of other

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media-related goods and services, so that Danish TV production companies and sellers of media goods and services would be seriously affected.

(20) The Danish authorities undertake to communicate to the Commission a restructuring plan or a liquidation plan or proof that the loan has been reimbursed in full not later than six months after the rescue aid measure has been authorised.

IV. ASSESSMENT OF THE MEASURE: PRESENCE OF AID

(21) Article 87(1) EC provides that "[s]ave as otherwise provided in th[e] Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market". The application of these conditions is examined below.

State resources (22) The aid is financed through the general budget of the State as authorised by the supplementary appropriations act 2008, so that State resources are involved.

Economic advantage favouring certain undertakings (23) As the only beneficiary of the measure, TV2 Danmark A/S obtains an economic advantage from the disbursement and use of State funds. The company's attempts to obtain funding from the market at markets terms have been unsuccessful. The public funding provides therefore a selective economic advantage to the recipient which it failed to obtain otherwise or, assuming it could, at better terms and/or quicker than what the market would have been willing to provide.

(24) Indeed, if, contrary to the evidence reported by the Danish authorities that TV2 Danmark A/S' market bankers have refused to increase their financial exposure in the company, these or other banks had accepted to fund the additional liquidity needs of the company, they would have done so in return for a higher remuneration (i.e. interest rate) than the one which will apply to the credit facility consented by the State. Moreover, according to the Danish authorities, TV2 Danmark A/S is in urgent need of funding, thereby making necessary the urgent recourse to rescue aid. It is therefore not established –nor do the Danish authorities claim- that, had market bankers accepted to take on additional risk of default with the company, they would have taken it to the same extent and as quickly as the Danish government.

(25) The Commission notes that the Danish authorities do not claim that the market economy investor principle has been respected. In fact, the Danish authorities are allegedly not yet in possession of a clear restructuring plan or investment prospects which would show a positive return for the loan made available to TV2 Danmark A/S at less favourable conditions for the (State) lender than what market banks would have requested, had they accepted to grant the loan at all, quod non. A plan aimed at ensuring the long-term viability of the company, on which private banks have expressed doubts, will only be worked out in the months to come. At the time of

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granting the loan, the Danish State has not the information on prospects of viability that a market investor would require.

(26) In addition, the Commission notes that the Danish authorities do not claim the absence of an economic advantage to the recipient by fulfilment of the cumulative conditions of the Altmark case law2. In any event, the following considerations are relevant:

− Firstly, it is apparent that the liquidity problems arise out of poor planning of investments or imprudent consideration of the market risks facing the company rather than from discharging public service obligations. Moreover, public funds are supplied ex post facto and not on the basis of parameters of compensation established ex ante in an objective manner, so that the second condition of Altmark is not fulfilled.

− Secondly, the Commission has already noted that TV2 Danmark A/S has not been chosen to discharge its public service obligations pursuant to a public procurement procedure3. In the case at hand, the amount of support consented to TV2 Danmark A/S is based on the company's specific total liquidity needs, including needs arising from activities which are not subject to such obligations. Whilst there is no claim that the financial support is intended to compensate for the costs of such obligations, the determination of the actual amount granted results from the company's specific liquidity needs and not from the analysis of the needs of a hypothetical typical undertaking active in the sector, well run and adequately provided to discharge those obligations. It follows that the forth condition set out in Altmark is not fulfilled either.

(27) In the circumstances, the provision of an economic advantage to the recipient appears therefore to be established.

Distortion of competition

(28) The undertakings with which TV2 Danmark A/S competes for the provision of broadcasting and media-related services mainly in Denmark do not have access to similar funding from the Danish State at the same conditions as provided by the measure. Contrary to the recipient as far as the application of the notified measure is concerned, their funding can be deemed to be provided by the market and/or at market conditions. As a result, caeteris paribus, faced with similar cash flow and funding difficulties as TV2 Danmark A/S, the competitors' operations would need to be partly discontinued or, in any event, suffer greater strain than what TV2 Danmark A/S will in all likelihood experience. Conversely, without the loan, TV2 Danmark A/S faces a risk of bankruptcy and/or discontinuation of certain operations it presently carries out on the market. The loan modifies therefore the normal outcome of the competitive process for TV2 Danmark A/S and their competitors.

(29) It follows thereof that the measure distorts or threatens to distort competition.

2 Case C-280/00 Altmark Trans GmbH and Regierungspräsidium Magdeburg v Nahverkehrsgesellschaft GmbH (2003) ECR I-7747. 3 Commission Decisions 2005/217/EC, OJ EU L 85 of 23.3.2006, p. 1-21 and case N 313/2004, OJ EU C 172 of 12.7.2005, p.3. 7

Effect on trade between Member States (30) The State loan allows TV2 Danmark A/S to continue with its planned operations in the acquisition and sale of audiovisual rights on cross-border markets. Contrary to what could have happened without the loan, TV2 Danmark A/S may still buy similar amounts of rights as in the past and needs not to resell, if it does not wish to do so, rights already acquired to other competing broadcasters in Denmark, some of which, as stressed above, are subsidiaries of non Danish undertakings or broadcast from the UK. Moreover, programming by TV2 Danmark A/S and related advertising activities and revenues stemming from ads on and volumes of sales from products sold in Denmark and traded across EU borders might also continue relatively unchanged, contrary to what could have happened if TV2 Danmark A/S discontinued operations without the loan.

(31) It follows thereof that the measure is liable to affect trade between Member States.

Conclusion (32) In view of the foregoing, the Commission considers that the notified measure grants an economic advantage to TV2 Danmark A/S. The measure is publicly funded, distorts competition and has an effect on trade between Member States. Therefore the Commission regards the notified measure as constituting State aid within the meaning of Article 87 (1) of the EC Treaty.

(33) Having established that the project involves aid within the meaning of Article 87(1) of the EC Treaty, it is necessary to consider whether the measure can be found to be compatible with the common market.

V. ASSESSMENT OF THE MEASURE: COMPATIBILITY

Article 86(2) of the EC Treaty

(34) Article 86(2) EC provides that "Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Treaty, in particular to the rules on competition, in so far as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Community". Account should also be taken of Article 16 EC4, as interpreted by the protocol on the system of public broadcasting annexed to the EC Treaty5.

4 Article 16 EC states "Without prejudice to Articles 73, 86 and 87, and given the place occupied by services of general economic interest in the shared values of the Union as well as their role in promoting social and territorial cohesion, the Community and the Member States, each within their respective powers and within the scope of application of this Treaty, shall take care that such services operate on the basis of principles and conditions which enable them to fulfill their missions" 5 The protocol states that "The provisions of the Treaty establishing the European Community shall be without prejudice to the competence of Member States to provide for the funding of public service 8

(35) As indicated above, as alleged by the Danish authorities, TV2, the main channel of TV2 Danmark A/S is entrusted with the operation of services of general economic interest for its broadcasting operations in Denmark. The Danish authorities stress that public service missions could be discontinued without the aid measure. In its decisions of 19 May 2004 and of 2 February 2005, the Commission assessed positively the conditions of this entrustment in the light of the enforcement rules it set for Article 86(2) EC its Communication on the application of State aid rules to public service broadcasting6. The conditions of this entrustment have not materially changed since then.

(36) However, the Danish authorities have not claimed that the public financing of the measure is granted for the fulfillment of the public service remit as conferred by Denmark and that it constitutes compensation to TV2 for the costs of that remit. The loan is not earmarked only to activities linked with public service missions and provides liquidity for TV2 Danmark A/S overall portfolio of commercial and non- commercial activities alike. In any event, the application of Article 87 EC does not necessarily obstruct the performance of these missions. Such obstruction could occur if the aid was partly or totally deemed not compatible with the common market based on the derogation provided for in Article 87(3) EC. As shown below, this is not the case, so that the applicability of Article 86(2) needs not to be further considered.

Article 87 (3) c) EC of the EC Treaty

(37) Article 87(3) c) EC declares: "The following may be considered to be compatible with the common market: (…) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest (…)".

(38) The conditions under which the Commission applies Article 87(3) c) to aid granted to firms in difficulty are laid down in its Communication on "Community guidelines on state aid for rescuing and restructuring firms in difficulty" ("the guidelines" hereafter)7. The compliance of the notified measure and of the information and undertakings provided by the Danish authorities on notification with the rules and conditions laid down therein is examined below, it being understood that the compliance with these rules and conditions is a determining factor for the Commission decision.

(39) TV2 Danmark A/S is experiencing a strong deterioration of its accounts, with strong bearing on its short term cash flow prospects, from which it cannot recover on its own, whilst external funds at market conditions are not made available to them. As a result, a continuation of the current loss-making situation would almost certainly condemn it to going out of business in the short or medium term. The beneficiary TV2 Danmark

broadcasting insofar as such funding is granted to broadcasting organisations for the fulfillment of the public service remit as conferred, defined and organised by each Member State, and insofar as such funding does not affect trading conditions and competition in the Community to an extent which would be contrary to the common interest, while the realisation of the remit of that public service shall be taken into account" 6 OJEU C 320, 15.11.2001, p.5-11. 7 OJEU C 244, 1.10.2004, p.2-17. 9

A/S, which is not a newly created firm or part of a larger business group, can thus be regarded as a firm in difficulty within the meaning of the guidelines8.

(40) The aid is reversible as it consists of liquidity support in the form of a loan, the interest rate of which […]9 is the one which commercial banks currently apply to TV2 Danmark A/S. Such rate is higher than the reference rate adopted by the Commission for Denmark (5.81%)10. It includes a commercial margin […] which is higher than the one which commercial banks applied to TV2 Danmark A/S when its financial situation was healthier and it was charged a […] commercial margin by their market bankers. The relevant condition within the guidelines as to the form of the aid and interest rate of it being comparable to those observed for healthy firms or, in any event, the reference rate adopted by the Commission is thus met11.

(41) The commitment from the Danish authorities to communicate to the Commission a restructuring plan or a liquidation plan or proof that the loan has been reimbursed in full not later than six months after the rescue aid measure has been authorised, ensures that the aid is also temporary and limited to six months12. As a result, the Commission will be in a position in due time to assess and, if appropriate, approve the possible destination of unspent funds of the credit facility in connection with a possible restructuring or liquidation plan. Nor has TV2 Danmark A/S or the public entity to which it succeeded, received rescue or restructuring aid in the past ten years13. The relevant conditions of the guidelines in those respects are thus met.

(42) The aid is warranted on grounds of serious social difficulties. TV 2 Denmark A/S going out of business would have serious implications not only for its approximately 1050 employees (including subsidiaries) but also for its suppliers such as Danish TV producers which are heavily dependent on TV2 Danmark A/S continued operations, at least for the period during which the rescue aid is to be granted. The Commission also notes the positive contribution to media plurality and democratic debate from the public service remit of the company. On the other hand, the major reliance of TV2 Danmark A/S on broadcasting and media-related activities carried out only in Denmark, with limited cross-border substitutability contains possible spill-over effects of the aid on other Member States. As a result, the relevant condition in the guidelines is also met14.

(43) Finally, the amount of drawdowns must be based on the prospective liquidity budget established in annex to the loan agreement, which is limited to DKK […]. This budget has been assessed by independent auditors (PriceWaterhouseCoopers) who found it to be based on a “tight” estimate of the company’s liquidity requirements for the remainder of 2008 since the budget only takes into account costs which make TV2 able to ensure a continuation of the group’s present activities and possible payments

8 Guidelines, points 9 and 11 to 13. 9 Six-month CIBOR was 5.49% on 13.6.2008. 10 As of 1.7.2008, 4.81% + 100 basis points. 11 Guidelines, points 15 and 25 a). 12 Guidelines, points 15 and 25 c). 13 Guidelines, point 25 e). 14 Guidelines, point 25 b). 10

related to certain legal claims concerning payments for audiovisual rights and on which final decisions are expected in the second half of 2008. Spending is thus limited to what is necessary taking into account that the business of the group ought not to be eroded. According to the same assessment, the budget does neither allow for investment in new activities, nor for aggressive behaviour in commercial markets. Moreover, effective drawings are subject to a strict control mechanism to avoid that the public funds are used to finance new activities and/or aggressive commercial behaviour, where the discretion of the public authorities to grant draws on the loan facility is circumscribed by the independent audit firms finding, on a monthly basis, that the draw downs do not exceed what is necessary to keep the firm in business.

(44) The Commission notes that this mechanism will apply in case liquidity needs exceed the prospective budget for 2008, up to the DKK […] ceiling, for instance due to a sharper than expected decrease in advertising revenues. Such revenues are correlated to the general level of economic activity, which is strongly slowing down in Denmark. In the circumstances of an uncertain economic environment, the creation of a safety reserve totalling […]% of the amount of the credit facility, the use of which must be duly justified and comply with the requirements described above, is consistent with the obligation not to grant aid above what is necessary to ensure survival of the company.

(45) The Danish authorities have thus put in place appropriate mechanisms to ensure that the aid effectively used below the maximum limit of DKK […] is restricted to the amount needed to necessary to keep TV2 Danmark A/S in business for the six-month period for which the aid is authorised15.

Conclusion (46) In the light of the above, the Commission has come to the conclusion that the aid involved in the notified measure is compatible with Article 87(3)(c) of the EC Treaty.

VI. DECISION

On the basis of the foregoing assessment, the Commission has decided that the aid measure “Rescue aid to TV2 Danmark A/S” is compatible with Article 87(3)(c) of the EC Treaty.

The Commission wishes to remind the Danish authorities that it must be provided with a restructuring plan or a liquidation plan or proof that the loan has been reimbursed in full not later than six months after the rescue aid measure has been authorised.

If this letter contains confidential information which should not be disclosed to third parties, please inform the Commission within fifteen working days of the date of receipt. If the Commission does not receive a reasoned request by that deadline, you will be deemed to agree to the disclosure to third parties and to the publication of the full text of the letter in the authentic language on the Internet site: http://ec.europa.eu/community_law/state_aids/index.htm

15 Guidelines, point 25 d). 11

Your request should be sent by registered letter or fax to:

European Commission Directorate-General for Competition State Aid Greffe Rue de Spa 3 B-1049 Brussels Fax No: +32 2 2961242

Yours faithfully, For the Commission

Neelie KROES Member of the Commission

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