No L 273/26 Official Journal of the European Communities 16. 10. 84 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 28 September 1984 on the FF 200 million of aid in the form of equity loans which the French Government granted to a newsprint producer in 1981 and 1982 (Only the French text is authentic) (84/489/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the Euro- pean Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice to the parties concerned to submit their comments, in accordance with the above provision, and having regard to those comments, Whereas : In 1981 and 1982 the French Government extended approximately FF 200 million of equity loans (préts participatifs) to the country’s largest newsprint producer, which was insolvent. Such public support of ailing businesses involves elements of State aid. The French Government had also breached its obligations under Article 93 (3) of the Treaty by failing to notify the aid to the Commission beforehand. On 16 June 1982 the Commission decided to open the procedure laid down in Article 93 (2) of the Treaty in respect of the aid since it did not appear to qualify for any of the exceptions from the State- aid rules provided for in Article 92 (3), which were the only ones potentially applicable in the case. By letter dated 9 July 1982 the Commission accor- dingly gave the French Government notice to submit its comments. The French Government replied to the Commis- sion’s letter by a telex sent on 24 November 1982, in which it adduced the following reasons to justify the search for an industrial solution to the firm’s difficulties : exploitation of indigenous raw materials, the need to preserve jobs in the Upper Normandy region, and the need to maintain a relative security of supply for newsprint. The telex stated that the Government had been forced to step in to help the firm in 1981 and 1982 with about FF 200 million in equity loans pending an industrial solution. The search for such a solution had, however, so far been unsuccessful. The French  Government  submitted further comments at a bilateral meeting held on 25 January 1983 and by a letter dated 2 April 1984. The third parties that responded to the Commis- sion’s invitation to comment on the case, namely three other Member States and one trade associa- tion, said they shared the Commission’s concern about aid to the firm. One of the Member States particularly stressed that the aid was liable to affect its export trade. The provision of public funds in the form of ‘equity loans’ may involve elements of State aid. In the present case the aid character of the funding is seen from the fact that the firm was in financial difficulties brought about by poor management and in particular a serious neglect of investment in the period 1975 to 1980, which finally led it to declare itself insolvent in December 1980.