9.10. 1999 Official Journal of the European Communities L 263/19 COMMISSION COMMISSION DECISION of 9 December 1998 on State aid granted by Germany to Maschinenfabrik Sangerhausen (Samag) (notified under document number C(1998) 4274) (Only the German text is authentic) (Text with EEA relevance) (1999/663/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 on the European Economic Area, and in particular Article 62(1)(a) thereof, Having given interested parties notice to submit their comments in accordance with those Articles, Whereas: Maschinenfabrik Sangerhausen GmbH iK. (hereinafter referred to as Samag) was privatised in June 1991. On 1 July 1994 insolvency proceedings (Gesamtvollstreckungsverfahren — insolv- ency proceedings prior to a takeover or the winding-up of a company, the procedure in the new Federal Linder equivalent to the Konkursverfahren in the rest of Germany) were initiated regarding the company and its assets because it was unable to pay its creditors and its debts exceeded its assets. On 14 July 1994 Germany notified aid amounting to DEM 2 million that the Land of Saxony-Anhalt had made available to Samag. On 1 February 1995 the Commission decided to initiate proceedings pursuant to Article 93(2) of the EC Treaty in respect of the aid granted in the form of subsidies intended to finance the recovery of assets located abroad or subject to reservation of title and to keep the business as a going concern for a short time. The Land had originally provided the subsidies in order to achieve milder terms in the insolvency proceedings in order to assist employees, suppliers and other creditors while it tried to identify a new source of capital for the complete or partial takeover of the business or to satisfy the creditors in a winding-up since the assets would otherwise be insufficient. Since the beginning of Samag's insolvency proceedings, the aid has been used towards the orderly liquidation of the business. Of the DEM 2 million, DEM 50 000 was to be used for paying interest on a bridging loan for redundancy payments on winding-up that had been taken out by the administrator in the winding-up. The Commission was uncertain whether this part of the aid constituted a general measure or aid within the meaning of Article 92(1). The Commission decision was published in the Official Journal of the European Communities (') and interested parties were given notice to submit their comments. II Germany provided details of the aid by letters of 28 March, 4 May and 23 November 1995 and 12 June and 20 December 1996. It was stated that the aid had been used as follows: — DEM 50000 for the payment of interest on a bridging loan for redundancy payments on winding-up taken out by the administrator in the winding-up; — DEM 770000 for the purchase of materials to complete outstanding orders and to secure the release of materials held under reservation of title for Samag's core business (other than the foundry); — DEM 230000 for complete performance of contracts concerning the foundry; — DEM 350 000 for payments to public utilities (gas, water and electricity, of which DEM 91 000 were made in July and August), mainly concerning the foundry; — DEM 600 000 for the repatriation of Samag's assets from abroad. The aid made it possible to continue the insolvency proceed- ings in an orderly manner; otherwise the company would have had to be put into liquidation by reason of its insufficient assets. () O] C 262, 7.10.1995, p. 16.