April 16, 2011 / 10:04 AM / 7 years ago

EU executive says receives reply from WestLB

BRUSSELS, April 16 (Reuters) - The European Union executive said on Saturday it has received documents from Germany’s WestLB [WDLG.UL] by Friday’s deadline for submitting a restructuring plan for the ailing public-sector bank.

“(The Commission) has received a series of documents in German, that we are analysing and translating,” a spokesman for the EU executive said.

WestLB owners -- the German state of North Rhine-Westphalia and local savings banks -- have to propose a revamp of the bank to the European Commission to validate billions of euros in state aid it received during the global financial crisis.

Earlier this week, EU competition chief Joaquin Almunia said he hoped the business plan would include asset sales to ensure the lender’s viability. The Commission could rule state aid for WestLB was illegal if it is not satisfied with the restructuring proposal.

On Thursday, the finance minister of North Rhine Westphalia said WestLB’s owners have unanimously agreed to a radical overhaul of the lender to create a regionally focused bank. [ID:nLDE73D26G]

Under the proposed model, non-core assets such as its project financing unit, its Russian bank licence or its derivatives business could be sold, while the remainder of its operations would be wound down. [ID:nLDE72F0T3]

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