Polish automaker FSO solved an immediate financial problem but still has another legal challenge.
Three weeks ago, the Polish treasury agreed to transfer E13.5 million in state aid to help struggling FSO.
This included E6.7 million in subsidies for employee severance payments and other restructuring and E6.8 million as a capital injection.
Poland said the aid package had not been paid for a lack of funds, but had been granted before Poland joined the EU in May 2004, so it is not subject to EU Compe-tition Commission review.
But FSO may not be totally untangled from its history as a subsidiary of brankrupt Korean automaker Daewoo.
KAMCO, the Korean government agency for working out bad debt, says it still has claims of $570 million (E428 million) on FSO.
The Polish position is that the debts were converted into FSO shares in 2003.
KAMCO argues the debt-to-equity swap was groundless because FSO owed the money to Daewoo UK, not Daewoo Motor Co.