L 316/20 Official Journal of the European Communities 25.11.98 COMMISSION DECISION of 16 December 1997 on State aid granted by the Land of Thuringia to Thiiringer Motorenwerke GmbH (notified under document number C(1997) 4341) (Only the German text is authentic) (Text with EEA relevance) (98/664/EC) THE COMMISSION OF THE EUROPEAN COMUNITIES Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 93(2) thereof, Having regard to the Agreement establishing the European  Economic  Area, and in particular Article 62(1)(a) thereof, Having given the other Member States and other parties concerned notice to submit their comments, in accordance with Article 93(2) of the EC Treaty, Whereas: I State aid for Thiringer Motorenwerke ~GmbH (hereinafter referred to as “TMW’) was notified by Germany to the Commission by letter dated 8 August 1996, received on 12 August 1996. The notification concerned rescue aid provided under a scheme known as the Consolidation Fund of the Land of Thuringia (Konsolidierungsfonds des Landes Thiiringen), authorised by the Commission on 20 December 1995 (}). Several loans totalling DEM 4,8 million had been made to the company under the scheme in 1995 and 1996 without awaiting the Commission’s decision. The case was therefore registered as non-notified aid under the reference NN 99/96. TMW'’s main business is the production of engines for motor vehicles. By letter dated 8 November 1996, the German authorities informed the Commission that Gesamtvoll- streckungsverfabren proceedings (insolvency proceedings prior to a takeover or the winding-up of the company) had been initiated on 30 September 1996. The Commission informed Germany, by letter dated 23 January 1997, that it was initiating Article 93(2) proceedings in respect of the whole of the rescue aid () OJ C 215, 25.7.1996, p. 6. measures in the form of subsidised loans (with a nominal value of DEM 4,8 million), on the following grounds: — doubts as to the compatibility of the loans with the common market, in view of the period they covered, which was more than six months, — doubts as to the compatibility with the common market, of the loans granted in 1996, since the principle that the aid should be a one-off operation did not seem to have been complied with; also, doubts as to the nature of the aid and whether the respite obtained through the granting of the loans had actually been used to draw up a coherent restructuring plan aimed at restoring the company’s long-term viability, — doubts whether various commitments entered into when the company IFA Motorenwerke Nordhausen GmbH was privatised by the Treuhandanstalt (‘THA’) had been adhered to in the business plans presented. The letter also stated that the business prospects described by Germany took no account whatever of TMW’s insolvency. By a notice published in the Official Journal of the European Communities(*), the Commission gave the other Member States and interested parties the opportunity to submit any comments on the measures in question within one month of its publication. II Having requested on 24 February 1997 a one-month extension of the period initially set for presenting their comments, a request which the Commission granted, the German authorities submitted their comments by letter dated 1 April 1997. Since in the Commission’s view the answers provided were not complete, it asked additional questions on 7 May 1997 and 6 August 1997. Germany then provided additional information by letters dated 26 June 1997, 10 October 1997 and 6 November 1997. (%) OJ C 104, 3.4.1997, p. 6.