The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

32 and/or hybrid capital. 121 Member States can notify schemes, and also ad hoc aid measures to specific beneficiaries under 3.11 TF, but any individual aid award in excess of EUR 250 million must be notified separately, even if granted under a scheme approved by the Commission 122 . Recapitalisation aid is regulated stringently and in detail because of its highly distortive nature. 123 The Temporary Framework includes comprehensive entry, 124 exit, 125 pricing 126 and governance rules, including measures to limit the distortion of competition. 127 The amount of recapitalisation is limited to the necessary amount to restore the beneficiary’s viability, and in any case it may not go beyond restoring the capital structure on 31 December 2019. 128 Being an exceptional measure, recapitalisation under 3.11 TF is only available in select circumstances (to beneficiaries that would otherwise likely go out of business, but there must also be a common interest to intervene, and it must be clear that the beneficiary cannot find funding from the market). 129 The beneficiary undertaking cannot have been in difficulty on 31 December 2019 to be eligible for 3.11 TF recapitalisation aid; 130 those in difficulty at the end of 2019 can receive rescue and restructuring aid under Article 107(3)(c) of the TFEU and the Rescue and Restructuring Guidelines. 131 It should also be noted that beyond equity and hybrid capital, subordinated loans can also be granted under the Temporary Framework (they are regulated as a subcategory under 3.3 TF aid, 132 but 3.1 TF aid is also possible as a subordinated loan). The Temporary Framework also allows 3.2 TF guarantees for subordinated loans 133 (and 3.1 TF aid in the form of guarantees on subordinated loans is not excluded by the rules either). 121 Footnote 67 of the Temporary Framework defines hybrid capital as instruments “that have characteristics of debt as well as of equity”, e.g. convertible bonds. 122 Point 51 of the Temporary Framework. 123 Point 7 of the second amendment. 124 Section 3.11.2 of the Temporary Framework. 125 Sections 3.11.5 and 3.11.7 of the Temporary Framework. 126 Section 3.11.5 of the Temporary Framework. 127 Section 3.11.6 of the Temporary Framework. 128 Point 58 of the Temporary Framework. 129 Point 49(a) to (c) of the Temporary Framework. 130 Point 49(d) and (d- bis ) of the Temporary Framework. 131 Communication from the Commission — Guidelines on State aid for rescuing and restructuring non- financial undertakings in difficulty OJ C 249, 31.7.2014 132 Point 27- bis of the Temporary Framework. 133 Point 25- bis of the Temporary Framework.