Article 1
The following aid granted by Italy to Seleco SpA is hereby declared incompatible with the common market: (a) the partial write-off in 1994 by Ristrutturazione Elettronica SpA of ITL 16,8 billion on a loan of ITL 82 billion; (b) the repurchase in 1996 by Seleco SpA of its outstanding debt to Ristrutturazione Elettronica SpA of ITL 65,2 billion for ITL 20 billion; (c) the conversion into shares by Friulia SpA of an ITL 6 billion loan granted by it in 1992; (d) a capital injection of ITL 7 billion by Friulia SpA in 1994; (e) a convertible loan of ITL 12 billion at 7 % granted by Friulia in 1996 and guaranteed by a lien on four industrial brands owned by Seleco.