1999/484/EC: Commission Decision of 3 February 1999 concerning State aid which the Spanish Government has granted to the company Hijos de Andrés Molina SA (Hamsa) (notified under document number C (1999) 41) (Only the Spanish text is authentic) (Text with EEA relevance)

• Articles: 5

Article 1

The following aid, granted by Spain to the company Hijos de Andrés Molina SA, is illegal due to the fact that it was granted before the Commission had decided on its compatibility at the draft stage. Moreover, it is incompatible with the common market within the meaning of Article 92(1) of the Treaty, without fulfilling the conditions for exemption provided for in Article 92(2) and (3), and shall therefore be abolished.1. State aid in the form of guarantees:

(a) the guarantee for ESP 375 million granted on 18 June 1993 and called in on 29 September 1996 in an amount of ESP 401934206;

(b) the guarantee for ESP 200 million granted on 28 June 1994 and called in on 29 January 1996 in an amount of ESP 207578082;

(c) the guarantee for ESP 100 million granted on 16 August 1995 and replaced on 19 August 1996 and 11 November 1997 by a guarantee for the same amount;

(d) the guarantee for ESP 50 million granted on 14 September 1995 and replaced on 19 August 1996 and 11 November 1997;

(e) the following three guarantees: one for ESP 100 million, granted on 8 October 1996, one for ESP 75 million, granted on 20 August 1996 and one for ESP 21748150, granted on 11 November 1997;

(f) the following two guarantees: one for ESP 450 million, granted on 6 February 1998 and the other for ESP 300 million, granted on 2 May 1997.

2. State aid in the form of loans:

(a) a loan of ESP 375 million paid on 12 August 1993;

(b) a loan of ESP 550 million paid on 28 June 1994;

(c) two loans, one of ESP 350 million and one of ESP 125 million, paid on 24 October 1995;

(d) a loan of ESP 25 million, paid on 17 October 1996;

(e) a loan of ESP 1739 million, paid on 30 December 1995;

(f) a loan of ESP 850 million, paid on 11 July 1996;

(g) a loan of ESP 1100 million, paid on 5 November 1996;

(h) a loan of ESP 700 million, paid in two parts: ESP 400 million on 2 June 1997 and ESP 300 million on 31 July 1997;

(i) a loan of ESP 275951288, corresponding to the taking over by the Instituto de Fomento de Andalucía, through its public-sector company Sociedad para la Promoción y Reconversión de Andalucía SA, of an ESP 300 million loan made to Hijos de Andrés Molina SA by the financial institute Caixa d'Estalvis i Pensions de Barcelona.

3. State aid in the form of remission of debts by State organisations:

Cancellation of part of Hamsa's debts by State organisations, approved at the meeting of Hamsa's creditors on 28 May 1997, involving the following amounts:

- Municipality of Jaén: ESP158800000,

- Tax authorities: ESP338589000,

- Junta de Andalucía: ESP69089000,

- Social security: ESP789938000,

- Confederación Hidrográfica del Guadalquivir: ESP5144000.

Article 2

Spain shall, without delay, terminate the loan contracts and revoke the guarantees referred to in Article 1 which are still in force.

Article 3

1. Spain shall take the necessary measures to recover the aid referred to in Article 1:

- in the case of the guarantees, the difference between the interest rate granted and the free market rate,

- in the case of the loans, guarantees called in and debts cancelled, 100 % of the amounts concerned.

2. Recovery shall be carried out in accordance with the procedures of national law. The sums to be recovered shall attract interest from the date on which the aid in question was granted. The interest must be calculated on the basis of the commercial rate, with reference to the rate used for the calculation of the subsidy equivalent in the context of regional aids.

Article 4

Spain shall inform the Commission within two months from the date of notification of this Decision of the measures it has taken to comply with this Decision.

Article 5

This Decision is addressed to the Kingdom of Spain.

Done at Brussels, 3 February 1999.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ C 196, 26.6.1997, p. 10.

(2) OJ C 361, 27.11.1997, p. 3.

(3) A small and medium-sized enterprise is defined as an enterprise employing no more than 250 people with a turnover of no more than ECU 20 million (see point 3.2.4 of the Community Guidelines on State aid for rescuing and restructuring firms in difficulty (94/C 368/05) (OJ C 368, 23.12.1994, P. 12)).

(4) OJ L 79, 23.3.1994, p. 29.

(5) Letter SG(89) D/4328, of 5 April 1989, from the Commission to the Member States.

(6) Commission communication to the Member States (OJ C 307, 13.11.1993, point 38).

(7) Commission communication to the Member States (OJ C 307, 13.11.1993, points 39 and 40).

(8) Points 3.3 and 3.4, Public authorities' holdings in company capital - Bull. EC 9-1984.

(9) Judgement of the Court of Justice of 21 March 1991 in Case C-303/88, Italy v. Commission, [1991] ECR I-1433, at paragraphs 21 and 22.

(10) Community Guidlines on State aid for rescuing and restructuring firms in difficulty (OJ C 368, 23.12.1994, p. 12, and OJ C 283, 19.9.1997, p. 2, at point 2.3).

(11) Judgment of the Court of Justice of 14 September 1994 in Case C-278/92, Spain v. Commission, [1994] ECR I-4103, at paragraph 22.

(12) See the fifth indent of point 3.3 of the communication on public authorities' holdings in company capital - Bull. EC 9-1984.

(13) Commission communication to the Member States (OJ C 307, 13.11.1993, point 41).

(14) The specific guidelines for agriculture applied until 1 January 1998, when a new version of the guidelines entered into force containing the same rules, with amendments.

(15) Judgemt of the Court of Justice of 15 September 1998, in Case T-126/96, Breda Fucine, at paragraph 83 (not yet published).

(16) 1993 Report on Competition, point 403, p. 255.

(17) OJ L 79, 23.3.1994, p. 29.

(18) [1973] ECR 813.

(19) [1987] ECR 901.

(20) [1990] ECR I-3437.

(21) Commission communication to the Member States (OJ C 74, 10.3.1998, p. 22).