16.3.98 Official Journal of the European Communities L 78/1 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 30 July 1997 conditionally approving aid granted by France to the GAN group (Only the French text is authentic) (Text with EEA relevance) (98/204/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Articles 92 and 93 thereof, Having regard to the Agreement establishing the European Economic Area, and in particular Articles 61 and 62 thereof, Having given the parties concerned the opportunity to submit their comments, in accordance with the abovementioned Articles (), Whereas: 1. INTRODUCTION GAN is a publicly owned financial group which operates in the banking and insurance sectors. It has been experiencing major difficulties since 1993 following losses on its property financing business and in insurance. These difficulties prompted the State in 1995 to grant support to GAN in the form of a FRF 2,86 billion capital increase through the transfer of assets. Having examined the restructuring plans for GAN and its subsidiary UIC and the audit report drawn up by the investment bank Morgan Stanley (advisor to the () OJ C 149, 17.5.1997, p. 6. Treasury), the Commission decided on 18 September 1996 to regard the operation as non-notified State aid (aid No NN 43/96) and to approve it subject to implementation in full of the restructuring plan submitted to it. The plan provided inter alia for the sale of GAN’s majority holding in the CIC banking group so as to ensure a return to viability and to minimise the distortive effects of the aid. By letters dated 28 February and 3 March 1997, the French authorities stated that the approved aid was insufficient in view of the group’s worsening financial situation in the property financing sector and in the light of the failed attempt to privatise CIC, and that they were therefore notifying some FRF 20 billion of additional aid. On 12 March 1997 the Commission decided to reopen the Article 93(2) procedure in respect of the 1995 FRF 2,86 billion capital increase and to initiate the same procedure in respect of the new aid measures notified, namely a FRF 11 billion capital increase to be carried out in 1997 and a Government commitment to cover GAN’s estimated losses of FRF 9 billion. The Commission’s decision was notified to the French authorities by letter dated 8 April 1997 (SG(97) D/2644). In order to analyse in detail the documents handed over by the French authorities concerning the financial position of the GAN group, its restructuring plan and its viability, the Commission enlisted the help of an international investment bank prominent in the consultancy sphere.