The European Commission has given its approval to a credit facility authorised by the Danish government to rescue TV2. The Commission said the funding met its rules on state aid given to companies that had run into difficulties.
The quasi-commercial TV2 ran into difficulties resulting from the combination of over-expansion and a poor advertising market. A DKK 200m austerity programme implemented earlier this year failed to resolve the problems.
The Commission has said it will later review whether the credit facility will need to be repaid and whether sufficient measures have been put in place to ensure the long term viability of the channel.
