12.3.1999 Official Journal of the European Communities L 63/55 COMMISSION COMMISSION DECISION of 1 July 1998 on aid granted and to be granted by Italy to Keller SpA and Keller Meccanica SpA (notified under document number C(1998) 2047) (Only the Italian text is authentic) (Text with EEA relevance) (1999/195/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having given notice to the parties concerned, in accord- ance with the above Articles, to submit their comments, Whereas: By letters dated 12 April 1996 and 2 May 1996, the Italian Government notified the Commission of its intention to grant State guarantees under Article 2a of Law 95/1979 to Keller SpA and Keller Meccanica SpA, both declared insolvent and under extraordinary administrative arrange- ments since 1994. Both companies were part of Gruppo Keller, which manufactures rolling stock. Keller SpA, which was the parent company, is based in Sicily and employs 294 people. Keller Meccanica SpA, which is controlled by Keller SpA, is based in Sardinia and employs 319 people. In accordance with Law 95/1979, an extraordinary admin- istrator was appointed to draw up recovery programmes for both companies; the programmes were approved by ministerial decree on 22 December 1994 and envisaged, among other measures, completion of existing orders as a means of returning both companies to viability with a view to finding a purchaser; alternatively, the companies were to be wound up. Implementation of those measures was delayed because of difficulties in finding the required financing. Of the financing obtained by the companies, Keller SpA received an ITL 33 839 million soft loan from Irfis-Medi- ocredito della Sicilia while Keller Meccanica SpA obtained a ITL 6 500 million soft loan from Societa Finanziaria Industriale Rinascita Sardegna-Sfirs SpA. Both loans were granted at an interest rate lower than the corresponding reference rate for Italy (11,35 % for 1995). II On 10 February 1997, in view of the unsatisfactory in- formation provided by the Italian authorities and the serious doubts it had regarding the measures notified, the Commission decided to initiate proceedings under Article 93(2) in respect of: — the ITL 33 839 million soft loan granted by Irfis- Mediocredito della Sicilia SpA to Keller SpA at an annual interest rate of 4 %, — the ITL 6 500 million soft loan granted by Societa Finanziaria Industriale Rinascita Sardegna-Sfirs SpA to Keller Meccanica SpA at an annual interest rate of 5 %,