12. 6. 97 Official Journal of the European Communities No L 154/35 (Acts whose publicatibn is not obligatory) COMMISSION COMMISSION DECISION of 5 February 1997 concerning the financing of shipbuilding in Denmark during 1987 to 1993 (Only the Danish text is authentic) (Text with EEA relevance) (97/364/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 93 (2) thereof, Having, in accordance with Article 93, given notice to the . parties concerned to submit their comments, and having regard to those comments, Whereas: I In May 1996 the Ministry for Business and Industry in Denmark published a report containing a study carried out by Coopers & Lybrand, stating that the financing of vessels in Denmark during the period 1987 to 1993 had occurred in some cases on the basis of inflated prices, which could have meant that the aid ceiling applicable during the period mijght have been exceeded. Thus the purpose of opening the procedure was to investigate whether the maximum aid ceiling, as established by the Commission during the abovementioned period, had been complied with. The Coopers & Lybrand report clarified the use of a subsidiary model, the so-called mother-daughter company model, which was used when selling vessels. It was explained in the report that the principle of the mother- daughter company model was that a Danish shipyard creates a daughter company. The daughter company thus becomes a Danish shipowner entitled to receive aid in accordance with the Danish home credit scheme. The daughter company then sells the vessel for cash to the real purchaser. The real purchaser looks after its own financing of the vessel. By setting up the subsidiary the’ daughter company was able to reduce the price by inter alia the amount of aid obtained by financing the vessel via the daughter company. The use of the mother-daughter arrangement in effect transformed the credit terms available to Danish and EU shipowners into cash payment, and also made these payments available for shipowners from third countries. In contracts where the mother-daughter company model was used, two prices for the vessel occur: one price paid by the daughter company to the mother company, i.e. the shipyard, and one price paid by the real shipowner to the daughter company. Article 11 of Council Directive 87/167/EEC(") and Article 12 of Council Directive 90/684/EEC (3, require that Member States send ‘current reports on each shipbuilding and ship conversion contract by the end of the third month following the month of signing of each contract, containing details of the finan- cial contract support..." In such reports information on the contract price and the aid granted is required. On the basis of the information communicated to the Commis- sion, the Commission draws up an annual overall report stating inter alia the level of contract-related aid and other operating aid granted in each Member State. () OJ No L 69, 12. 3. 1987, p. S5. () OJ No L 380, 31. 12. 1990, p. 27.