Danish Government aid to troubled rail company, DSB First up in smokeSaturday, 26 November 2011
One unresolved business venture which the Danish government attempted was its investment in the rail business with the Scottish transport company First. After forming the DSBFirst and pumping millions of Danish Krona in. the company has gone bust.
AdvertisementThe problem here is not that because the company has gone bust it seeks bankruptcy protection or sell asset to repay its debts but the issue is that the financing from the Danish government was totally illegal and unacceptable. Now its being required that the money be paid back.
As such the Danish government and the state rail transport company, DSB are trying now to recover the hundreds of million the government illegally pumped into the DSB First which since 2009 has been running the Íresund trains.
But according the Danish government independent lawyer - it is impossible to recover the money back. DSB Firsts has no money as its tills are all empty.
“You can not cut the hair of an already bald person,” says Kim Lundgaard, a lawyer at Kammeradvokaten, the Danish government’s legal arm.
From the December 10, this year, Veolia will take over the operation of Íresund trains instead from DSB First. Íresund trains run the west coast of Sweden from Denmark.
By Scancomark.se Team
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