97/81/EC: Commission Decision of 30 July 1996 concerning aid granted by the Austrian Government to Head Tyrolia Mares in the form of capital injections (Only the German text is authentic) (Text with EEA relevance)

• Articles: 3

Article 1

The grants from Austria Tabakwerke AG to Head Tyrolia Mares in the form of capital injections amounting to ÖS 1 590 million (ECU 118 million) constitute State aid within the meaning of Article 92 (1) of the EC Treaty; that aid is considered compatible with the common market pursuant to Article 92 (3) (c) as it facilitates the development of certain economic activities without adversely affecting trading conditions to an extent contrary to the common interest.

The amount of ÖS 1 590 million includes a sum of ÖS 1 273 million (ECU 95 million) already conditionally approved by the Commission as rescue aid. Of the total, ÖS 400 million was already granted in April 1995, ÖS 373 million by 30 September 1995 (plus a tranche of ÖS 27 million scheduled but not actually paid out), ÖS 250 million by 31 December 1995, and ÖS 250 million by 30 June 1996; ÖS 145 million is to be paid by 31 December 1997 and ÖS 145 million by 31 March 1998.

Article 2

In order to ensure the compatibility of the aid with the common market, the Commission requires the Austrian authorities to undertake to guarantee that the following conditions are met:

- the restructuring plan is to be carried out as submitted to the Commission. By the end of August and the end of February each year till 1999, HTM has to deliver a report on the progress of the restructuring, showing the economic development and financial results of the company and their compliance with the restructuring plan. It must also submit the annual reports of the companies of the group for the years 1995 to 1999 by the end of June of the following year at the latest,

- the capacity reductions provided for in the restructuring plan are to be carried out on an irreversible basis,

- the capital injection by Eliasch into HTM of ÖS 25 million is to be effected within one month of the date of this Decision,

- the capital injection by Eliasch into HTM of ÖS 275 million is to be effected by 31 December 1998,

- an additional contribution of fresh equity capital of at least ÖS 600 million by way of an international public offer of HTM on the capital market or by means having the same effect is to be completed by the end of 1999 at the latest,

- past losses of ÖS 1 590 million may not be used for reducing taxable profits.

Article 3

This Decision is addressed to the Republic of Austria.

Done at Brussels, 30 July 1996.

For the Commission

Erkki LIIKANEN

Member of the Commission

(1) The exchange rates for the ecu applied in this Decision are: ecu 1= ÖS 13,46 = US $ 1,25 = DM 1,91.

(2) In the published version of the Decision, some business information in square brackets has been omitted.

(3) See Case C-303/88, Italy v. Commission [1991] ECR I-1433; see also Case C-305/89, Italy v. Commission [1991] ECR I-1603.

(4) Commission communication on the application of Articles 92 and 93 of the EC Treaty and of Article 5 of Commission Directive 80/723/EEC to public undertakings in the manufacturing sector (OJ No C 307, 13. 11. 1993, p. 3).

(5) Case C-303/88, Italy v Commission [1991] ECR I-1433.

(6) OJ No L 253, 21. 10. 1995, p. 22.

(7) Joined Cases C-278/92, C-279/92, C-289/92, Spain v. Commission [1994] ECR I-4103.

(8) Community guidelines on State aid for rescuing and restructuring firms in difficulty (OJ No C 368, 23. 12. 1994, p. 12).