No L 96/30 Official Journal of the European Communities i1. 4. 97 COMMISSION DECISION of 18 September 1996 amending Decision 92/317/EEC on State aid in favour of Hilaturas y Tejidos Andaluces SA, now called Mediterraneo Técnica Textil SA and its buyer (Only the Spanish text is authentic) (Text with EEA relevance) (97/242/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the Buropean Community, and in particular the first subparagraph of Article 93 (2) thereof, Having regard to the Agreement establishing the Euro- pean Economic Area, and in particular point (a) of Article 62 (1) thereof, Having given notice in accordance with Article 93 of the EC Treaty to interested parties to submit their comments to it Whereas: Hilaturas y Tejidos Andaluces SA (Hytasa), now called Mediterraneo Técnica Textil SA (MTT), was a private company which, following financial difficulties, was acquired in 1982 by Patrimonio del Estado. Hytasa manu- factured textile products in its plants in Seville and its region. From its acquisition in 1982 through to 1986, Patrimonio del Estado launched a restructuring plan financed through a Spanish sectoral scheme as well as capital injections amounting to Pta 6 600 million. These efforts did not prevent Hytasa’s poor economic results. By the eve of Spanish accession to the Community, Hytasa’s capital had virtually disappeared. In 1989, following a complaint, the Commission required the Spanish authorities to supply information about alleged capital contributions made to Hytasa from 1986 onwards. From the reply by the Spanish authorities, the Commission  determined that capital injections amounting to Pta 7 100 million had been paid to Hytasa. In 1990, the Spanish authorities informed the Commis- sion that Hytasa was being privatized. The conditions of the privatization process entailed a Pta 4 300 million capital injection by Patrimonio del Estado. Among the different bidders for Hytasa, the Spanish authorities selected the offer of Hilaturas Gossypium SA based in Barcelona and Industria Textil del Guadiana SA, based in Badajoz. The Spanish Government considered that these buyers had made the most interesting offer in economic terms and afforded the best assurance for the future viability of the company. The assessment was based on the industrial recovery plan suggested by the buyers, their financial ability to carry out the foreseen future capital increases, their experience in the textile sector, and also the inherent advantage in the fact that the buyers already owned industrial and commercial structures which would help with the implementation of Hytasa’s indus- trial plan. According to the sale contract supplied by the Spanish authorities, the terms of the sale were the following: — the sale price for all shares of the company was set at Pta 100 million, — over a period of three years: — the buyers undertook not to sell their shares unless previously authorized by Patrimonio, — changes in the shareholding would be restricted to operations ensuring the maintenance of a majority stake by the buyers, — the buyers would not carry out any lay-offs unless prior agreement was reached with the workers’ representatives, and only in the framework of schemes for early retirement or temporary suspen- sions of employment, — the company would not pay dividends for a five-year period; in the same period, the buyers would not split the company or sell any part of it; they would keep all facilities existing at the time of the sale, as well as some real estate, — proceeds of any sales of any other real estate would be kept within the company, — the buyers would implement the recovery plan attached to the sale contract, — all new brand names and other intangibles would be acquired by Hytasa,