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. Last Updated: 07/27/2016

EC Probes Holzmann




BRUSSELS, Belgium -- The European Commission has started a probe into a proposed German rescue plan for troubled construction firm Philipp Holzmann AG.


"From the documents submitted so far [the commission] has come to the conclusion that there are serious doubts regarding the compatibility of the measures with the [EU's] common market," the commission said Tuesday in a statement.


Chancellor Gerhard Schr?der intervened late last year to persuade creditor banks Deutsche Bank and Commerzbank to save Germany's second largest construction firm from insolvency after the shock discovery of huge losses.


The state contribution to the 1.5 billion euro ($1.51 billion) rescue package consists of a 150 million Deutsche mark ($77.5 million) subordinated loan from state-owned bank Kreditanstalt f?r Wiederaufbau and a government security for a loan of 125 million marks, the Commission said.