94/261/ECSC: Commission Decision of 12 April 1994 concerning aid to be granted by Spain to the special steel company Sidenor (Only the Spanish text is authentic)
1. The following maximum amounts of aid which Spain plans to grant directly or indirectly to the Spanish special steels company Sidenor, incorporating Acenor and Foarsa, may be regarded as compatible with the orderly functioning of the common market provided that the conditions and requirements of Articles 2 to 5 are met:
- a debt write-off of up to a maximum of Pta 26,3 billion,
- social aid up to a maximum of Pta 7,79 billion,
- new paid-in capital of up to a maximum of Pta 20,2 billion,
- up to a maximum of Pta 25,762 billion in the form of loss compensation to cover additional operating losses and financial charges in 1992 and 1993 over and above those originally forecast in the plan.
2. The aid has been calculated to enable the company to return to viability by the end of 1995. In the case that such viability is not attained by that date, Spain shall not request any further derogation pursuant to Article 95 of the ECSC Treaty for this company.
3. The aid shall not be used for the purpose of unfair competition practices.
4. Without prejudice to the aid measures referred to in this Article under the restructuring plan, any loans to the company must be on normal commercial terms; and the beneficiary company must not receive debt holidays or friendly treatment of debts to the State.
1. The following definitive closures of production capacity shall be carried out:
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2. All the capacity closures must be achieved in accordance with the timetable laid down in the restructuring plan at the latest. In addition, the stainless-steel plant at Larrondo must be sold to the private sector or closed by 30 June 1994.
3. The finality of the closures referred to in paragraph 1 shall be ensured either by the demolition of the installations concerned or by their disposal by sale outside Europe.
4. The beneficiary company shall not increase its remaining capacity for crude steel and hot-rolled finished products under the restructuring plan, other than resulting from productivity improvements, for a period of at least five years starting from the date of the last capacity closure under the plan or the date of the last payment of aid in respect of investments under the plan, whichever is the later.
The approval of aid as outlined in Article 1 is in addition subject to the following conditions:
(a) the level of net financial charges of the new company at the outset will be set at least at 3,5 % of annual turnover;
(b) the company or its legal successor will not claim or be granted tax reduction or relief on the basis of past losses which are covered by aid under the terms of this Decision;
(c) the beneficiary company shall carry out all the restructuring measures laid down in the restructuring plan as it has been submitted to the Commission, in accordance with the timetable contained therein.
1. Spain shall cooperate fully with the following arrangements for monitoring this Decision:
(a) Spain shall supply the Commission four times a year, and not later than 15 March, 15 June, 15 September and 15 December respectively, with reports containing full information in accordance with the enclosed Annex, on the beneficiary company and its restructuring. The first report should reach the Commission by 15 March 1994 and the last report by 15 September 1998, unless the Commission decides otherwise;
(b) the reports shall contain full information necessary for the Commission to monitor the restructuring process, the creation and use of capacity and show sufficient financial data to allow the Commission to assess whether its conditions and requirements are fulfilled. The reports shall at least contain full information in accordance with the Annex, which the Commission reserves the right to modify in line with its experiences during the monitoring process. It is up to Spain to oblige the beneficiary company to disclose all relevant data which may, under other circumstances, be considered as confidential.
2. The Commission shall, on the basis of the reports, draw up half-yearly reports which shall be submitted to the Council not later than 1 May and 1 November respectively, in order to allow discussion in the Council, if appropriate. If the beneficiary company envisages investments creating or extending capacity the Commission shall inform the Council on the basis of a report presenting the financing arrangements and demonstrating the absence of State aid.
1. The Commission may at any time decide to mandate an independent consultant, selected with the agreement of Spain, to evaluate the monitoring results, to undertake any research necessary and to report to the Council.
2. The Commission may have any necessary checks made in the aided companies in accordance with Article 47 of the ECSC Treaty, in order to verify the accuracy of the information given in the reports referred to in Article 4 (1) and in particular compliance with the conditions laid down in this Decision. In the case that a Member State makes a complaint that State aid is enabling the aided company to under-price, the Commission will initiate an investigation pursuant to Article 60 of the ECSC Treaty in particular.
3. In assessing the reports referred to in Article 4, the Commission will ensure that the requirements of Article 1 (4) are being respected.
1. Without prejudice to any penalties it may impose by virtue of the ECSC Treaty, the Commission may require the suspension of payments of aid or the recovery of aid already paid if, on the basis of the information received, at any time it were to find that the conditions laid down in this Decision had not been met. If Spain were to fail to fulfil its obligations under any such decision, Article 88 of the ECSC Treaty shall apply.
2. Moreover, if the Commission established, on the basis of the reports referred to in Article 4 (1), that substantial deviations from the financial data, on which the viability assessment has been made, have occurred, it may require Spain to take appropriate measures to reinforce the restructuring measures of the aided company.
This Decision is addressed to the Kingdom of Spain.
Done at Brussels, 12 April 1994.
For the Commission
Karel VAN MIERT
Member of the Commission
(1) OJ No L 362, 31. 12. 1991, p. 57.
(2) OJ No C 234, 12. 9. 1992, p. 5.
Supplementary provisions
ANNEXSupplementary provisions
The Commission's information requirements (a) Capacity reductions
- date (or expected date) of cessation of production,
- date (or expected date) of dismantling (1) of the installation concerned,
- where installation is sold, date (or expected date) of sale, identity and country of purchaser,
- sale price;
(b) investments
- details of investments realized,
- date of completion,
- the costs of the investment, the sources of finance and the sum of any related aid involved,
- the date of aid payment;
(c) workforce reductions
- number and timing of job losses,
- the total costs,
- a breakdown of how the costs are being financed;
(d) production and market effects
- monthly production of crude steel and finished products per category,
- products sold, including volumes, prices and markets;
(e) financial performance
- evolution of selected key financial ratios to ensure progress is being made towards viability (the financial results and ratios must be provided in a way allowing comparisons with the company's financial restructuring plan),
- level of financial charges,
- details and timing of aids received and costs covered,
- terms and conditions of any new loans (irrespective of source);
(f) Privatization
- selling price and treatment of existing liabilities,
- disposal of proceeds of sale,
- date of sale,
- financial position of company at time of sale;
(g) creation of a new company or new plants incorporating capacity extensions
- identity of each private and public sector participant,
- sources of their financing for the creation of the new company or new plants,
- terms and conditions of the private and the public shareholders' participation,
- management structure of a new company.
(1) As defined in Commission Decision No 3010/91/ECSC (OJ No L 286, 16. 10. 1991, p. 20).
Source: EUR-Lex (Publications Office of the EU), Β© European Union, reuse permitted under Commission Decision 2011/833/EU.
