Article 2
This Decision is addressed to the Federal Republic of Germany. Done at Brussels, 28 July 1999. For the Commission Mario MONTI Member of the Commission (1) OJ C 37, 4.2.1998, p. 8. (2) OJ C 377, 5.12.1998, p. 2. (3) In 1994 the production plant at Everts Datteln was destroyed by fire, with damage assessed at DEM 30 million. The company was underinsured and had to file for bankruptcy in 1996. (4) The waiver of debts owed to Sparkasse Erfurt was not made the subject of these proceedings either when the proceedings were initiated or when they were extended. Section III nevertheless considers whether this partial waiver constitutes state aid caught by Article 87(1). (5) The schemes involved are the following: 1. Guidelines for the assumption of guarantees by the Land of Thuringia (Richtlinie fur die übernahme von Burgschaften and Garantien durch das Land Thüringen; aid measure N 117/96); 2. Thuringia Fund for the Consolidation of firms in difficulty (Thüringer Fonds zur Konsolidierung von Unternehmen in Schwierigkeiten; aid measure NN 74/95); 3. Guidelines for the Thuringia Fund for firms in difficulty (Richtlinie zum Thüringer Fonds fur Unternehmen in Schwierigkeiten; aid measure N 102/96). (6) This loan was never granted and is not considered further in this assessment. (7) 1. Thuringia small and medium-sized enterprises loan scheme (Thüringer Darlehensprogramm für kleine and mittlere Unternehmen): the German Government argued that this scheme was de minimis and did not need to be notified for approval; 2. aid under iwo KtW schemes: the liquidity assistance scheme (Liguiditätshilfeprogramm; aid measure NN 37/95), in conjunction with the eastern small and medium-sized enterprises scheme (Mittelstandsprogromm-Ost). (8) For a time Everts used a fifth machine with a capacity of 25 million condoms. This machine could not be operated at profit and was taken out of production in 1997. (9) Case C 87/98 (letter ref. SG(99) D/760, 1 february 1999). (10) Everts has since repaid the liquidity loan with interest. But as Everts enjoyed a temporary advantage as a result of this loan, it does constitute state aid and must be considered in this decision. (11) OJ C 368, 23.12.1994, p. 12. (12) The charges on land owned by Everts and Everts Datteln which were held as security (Grundschuldsicherheit) by Sparkasse Erfurt originally amounted to DEM 11,1605 million. But after the parent company's bankruptcy it emerged that the sites were worth less and that their value was not sufficient to satisfy all creditors. This meant that the securities held by Sparkasse Erfurt were worth less than originally believed and that Sparkasse Erfurt would have received only DEM 2.0 to 2.5 million. (13) There are no coherent restructuring plans comprising the measures taken by both investors, which makes it difficult to establish their respective financial contributions, consisting of the investments financed by Everts Datteln and by Condomi respectively.