FRANKFURT, June 14 (Reuters) - Insolvent German retailer Arcandor said on Sunday it may reapply for a different category of state aid after the government rejected a funding request from the firm last week.
A spokesman for the Economy Ministry on Saturday confirmed a report in weekly magazine Der Spiegel that Arcandor could apply for a "Massekredit", a special kind of loan that can be granted once insolvency proceedings begin.
"The Massekredit is a normal instrument for companies which are insolvent. We are examining now whether it would make sense for us," a spokesman for the retailer said on Sunday.
A Massekredit can be issued at short notice and guaranteed by the government. Such loans help a company keep operating during insolvency proceedings, and servicing them takes precedence over the claims of other creditors.
Arcandor filed for insolvency on Tuesday after the government rejected a prior appeal for state support.
(editing by John Stonestreet)