28.8.1999 Official Journal of the European Communities L2271 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 22 December 1998 on aid granted by the Republic of Austria to Ergee Textilwerk GmbH (notified under document number C(1998) 4568) (Only the German text is authentic) (Text with EEA relevance) (1999/589/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 regard to the Agreement establishing the European Economic Area, and in particular Article 62(1)(a) thereof, Having given notice to the parties concerned, in accordance with Article 93(2) of the EC Treaty, to submit their comments, and having regard to those comments, Whereas: 1. PROCEDURE By letter dated 30 June 1997, the Austrian authorities notified the Commission of rescue aid for Ergee Textilwerk GmbH, Schrems, Austria (Ergee’). The proposed aid was in the form of a guarantee from the Federal Government and the Province of Lower Austria for an operating loan of up to ATS 150 million (ECU 10,8 million). By letter dated 18 November 1997, Austria also notified a capital injection by a new shareholder of ATS 25 million (ECU 1,8 million) which was to be converted into equity capital. The new shareholder is the State-owned Gesellschaft des Bundes fir Industriepolitische Mafinahmen GmbH, Vienna (‘GBI'). Since GBI carried out the capital injection before the Commission had taken a decision, and the Commission first took the view that the capital injection possibly constituted State aid, since there was no restructuring plan, the case was classified as unnotified aid. On 17 December 1997, the Commission approved the rescue aid under number NN 181/97 (ex N 455/97) for the period from July 1997 to the end of 1997. The Austrian Government was informed of the Commission's decision by letter dated 22 January 1998. A notice to that effect was published in the Official Journal of the European Communities (*). By letter dated 19 December 1997, the Austrian authorities notified restructuring aid. By letter dated 26 January 1998, the Commission requested additional information, which the Austrian authorities provided by letter dated 10 March 1998. By letter dated 20 April 1998, the Commission again requested information, which it should have received within the usual period of 20 working days. On 9 June 1998, Commission officials discussed the matter in Brussels with representatives of the Austrian authorities. By letter dated 23 June, the Austrian authorities provided background information on the GBI However, the additional information which was requested on 20 April 1998 has not been received. Instead, Austria informed the Commission by fax on 3 July 1998 of some changes to the notification. By letter dated 4 August 1998 the Commission informed Austria of its decision to initiate proceedings under Article 93(2) of the EC Treaty. It had reached the conclusion that to date Austria had not proved that all the restructuring measures were absolutely necessary or that the State aid was limited to the strict minimum required. The Commission also wanted to know whether Ergee had already received restructuring aid in 1994. Moreover, it found that the GBI capital injection of ATS 25 million (ECU 1,8 million) during the six months' duration of the rescue measures possibly constituted an extension of rescue aid and that perhaps other GBI measures needed to be examined more closely. () 0] C 70, 6.3.1998, p. 8.