2.3.9%6 Official Journal of the European Communities No L 53/41 COMMISSION DECISION of 18 October 1995 on State aid that Bavaria granted to the ECSC steel undertaking Neue Maxhiitte Stahlwerke GmbH, Sulzbach-Rosenberg (Only the German text is authentic) (Text with EEA relevance) (96/178/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 4 (c) thereof, Having regard to Commission Decision No 3855/91/ ECSC of 27 November 1991 establishing Community rules for aid to the steel industry ('), Having given notice, in accordance with Article 6 (4) of that Decision, to the other Member States and the parties concerned to submit their comments, Having regard to the comments received, Whereas: On 30 November 1994 the Commission decided to initiate the procedure provided for in Article 6 (4) of Decision No 3855/91/ECSC (Steel Aid Code) with respect to a series of loans totalling DM 49,825 million (ECU 26,53 million) which Bavaria granted between March 1993 and August 1994 to Neue Maxhiitte Stahlwerke GmbH (hereinafter referred to as ‘NMH’). The Commis- sion concluded, on the basis of the information provided by the German Government, that the loans granted to the company were not to be regarded as a genuine provision of risk capital according to usual investment practice in a market economy and might therefore represent State aid that would be incompatible with the provisions of the Steel Aid Code and the Treaty establishing the European Coal and Steel Community (hereinafter referred to as ‘the ECSC Treaty'). The Commission informed the German Government, by letter dated 12 December 1994, of its decision to initiate proceedings and requested its comments and any addi- tional information it might consider relevant to the case. The reply of the German authorities dated 13 January 1995 contained some additional information concerning Bavaria’s reasons for granting the loans, the other share- () OJ No L 362, 31. 12. 1991, p. 57. holders’ reasons for not participating completely in the financing of the company and the use of the loans (for a full description of the German Government’s position see section III). The German Government also referred to its communications of 15 July 1994, 14 September 1994 and 9 December 1994, submitted in the framework of the procedure concerning the intended financial measures to assist: NMH and Lech-Stahlwerke GmbH (hereinafter referred to as ‘LSW’) under the privatization plan of Bavaria, and stressed that the loans should be seen solely in relation to that plan. The Commission decided on 4 April 1995 (%) that the intended loss compensation of DM 125,7 million (ECU 67,81 million) and the contribution for investment of DM 56 million (ECU 29,78 million) in favour of NMH as well as the intended loss compensation of DM 20 million (ECU 10,63 million) for LSW repre- sented State aid incompatible with the Steel Aid Code and that Bavaria should consequently not grant this aid. The measures were planned in connection with the intended privatization sale of the 45 % share of Bavaria in NMH and its 19,734 % share in LSW to the Aicher group. The German Government filed an application for annulment of this decision with the Court of Justice of the European Communities (Case C-158/95)(®). NMH filed an application for annulment of this decision with the Court of First Instance of the European Communities (Case T-129/95) (%. The letter by which the Commission informed the German authorities of its decision to initiate the current procedure and inviting the other Member States and inte- rested third parties to submit their comments was published in the Official Journal (). It should be recalled that the Commission decided on 19 July 1995 to initiate a second procedure covering share- holders’ loans totalling DM 24,1125 million (ECU 12,82 million) which Bavaria granted to NMH in four tranches between July 1994 and March 1995 (). At the time when the present procedure was initiated the Commission was () See Bulletin EC 5-1995, point 1.3.55. () OJ No C 208, 12. 8. 1995, p. 4. ) OJ No C 229, 2. 9. 1995, p. 21. () OJ No C 173, 8. 7. 1995, p. 3. () Not yet published in the Official Journal, see IP(95) 780.