No L 5/40 Official Journal of the European Communities 5.1.97 COMMISSION DECISION of 17 July 1996 on aid granted to the Compagnie Générale Maritime in the context of a restructuring plan (Only the French text is authentic) (Text with EEA relevance) (97/14/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first paragraph of Article 93 (2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62 (1) (a) thereof, Having given the parties concerned notice, in accordance with the abovementioned Articles, to submit their comments, and having regard to such comments, Whereas: THE FACTS The Commission learned from press reports beginning in July 1993 that the French authorities had granted aid totalling FF 700 million to the State-owned shipping company, Compagnie Générale Maritime (CGM), and its parent company the Compagnie Générale Maritime et Financiére (CGMF). By letter of 13 August 1993, the Commission asked the French authorities to provide information on this situation and justification for any sum of aid paid out. However, official bilateral meetings and exchanges of correspondence failed to provide compre- hensive answers. In November 1994, the French authorities advised the Commission that CGM was accelerating its restructuring plan and had decided to withdraw from liner services to the Far East. In return, the French Government had granted additional aid of FF 1 550 million. Despite the repeated assurances given by the French authorities that they would provide justification for the aid, they did not succeed in allaying the Commission’s doubts as to its compatibility with the common market; by Decision of 31 October 1995, the Commission decided to initiate the procedure provided for in Article 93 (2) of the EC Treaty against the French Government. This procedure was extended by Decision of 20 December 1995 to include an additional amount of aid which the French Government had notified to the Commission for investigation. Both decisions were published in the Official Journal on 28 February 1996 (). As a result of publication, comments have been received from the United Kingdom Government and from two companies, one of which competes with CGM on the French West Indies route and the other of which was formerly a partner of CGM in a consortium providing services to the islands of the Indian Ocean. The French authorities have also submitted comments and informa- tion, both in writing and at bilateral meetings, the most recent of which was held on 3 July 1996. II CGM has primarily operated liner shipping services in a highly competitive international environment, involving many of the major shipping lines of the Member States and third countries. At the end of the 1980s, CGM de- veloped a global strategy to provide independent east-west container services by investing in commercial, logistics and information technology areas. Despite its improved productivity, its freight rate dropped and its operating returns were not sufficient to cover its development costs. In its 1989 guidelines the Commission recognized this situation as a prolonged recession. Because of its worsening level of indebtedness and its increasingly heavy operating losses, CGM began a restruc- turing process in May 1992. It agreed with its shareholder, the French authorities, on the outline of a coherent physical and financial restructuring policy to restore the company’s viability. Accordingly, it withdrew its loss- making North American services and adopted a restruc- turing plan — approved by the French authorities in October 1992 — which proposed three areas for action: (") Commission Decision 96/C 58/06, O] No C 58, 28. 2. 1996, p. 4, Commission Decision 96/C 58/07, OJ No C 58, 28. 2. 1996, p. 6.