Polish flag-carrier LOT has been granted a reprieve by European Commission regulators who have ruled that a rescue loan from the government complies with state-aid rules.
LOT is to provide a restructuring plan to the Commission by 20 June.
The Commission says the Zl400 million ($123 million) loan is "limited in time and scope" and that the temporary measure will allow LOT to pay creditors and maintain operations until the restructuring plan is put in place.
It says the rescue loan is "in line" with guidelines on restructuring companies in difficulty, and limited to the amount necessary to keep the airline in business for a six-month period.
"Polish authorities have committed to submit a restructuring plan aimed at ensuring the future viability of LOT," the Commission adds.