L 145/32 Official Journal of the European Communities 10. 6. 1999 COMMISSION DECISION of 3 February 1999 concerning State aid granted by Germany to Spindelfabrik Hartha GmbH (notified under document number C(1999) 326) (Only the German text is authentic) (Text with EEA relevance) (1999/380/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 establishing the Euro- pean Economic Area, and in particular Article 62(1)(a) thereof, Having, in accordance with these Articles, given the parties notice to submit their comments, Whereas: I. PROCEEDINGS By letter dated 25 November 1996, Germany notified, pursuant to Article 93(3) of the EC Treaty, the granting of aid to Spindelfabrik Hartha GmbH (Hartha). By letters dated 13 December 1996 and 4 March 1997 the Commis- sion asked for further information, which was provided by letters dated 29 January, 6 March and 27 March 1997. Since the aid had been made available before it was notified, it was registered as non-notified aid under the reference NN 135/96. In June 1997 Hartha filed for bankruptcy (Gesamtvoll- streckungsverfahren). On 30 July 1997 the Commission initiated proceedings under Article 93(2) of the EC Treaty and published a notice to the other Member States and interested parties (*). II. DETAILED DESCRIPTION OF THE AID A. Description of Hartha Hartha is engaged in the manufacture of various types of spindle, cotton-picker spindles, bottom rollers and () OJ C 224, 17.7.1998, p. 6. doffing systems, and in the modernisation of ring spin- ning frames and speed-frames. Under a purchase agreement dated 6 November 1992 Hartha was sold to Frocatec Elektronik & Konstruktion Beteiligungsgesellschaft mbH (Frocatec). Frocatec’s shares are held by four persons, and the company has six employees. It is an SME within the meaning of Commis- sion Recommendation 96/280/EC of 3 April 1996 concerning the definition of small and medium-sized enterprises (%). The total aid granted under the privatisa- tion (DEM 14,942 million) was covered by the Treuhand regime and was within the limits laid down therein. Between 1989 and 1996 the company reduced the number of employees from 675 to 173. In 1995 it had a turnover of DEM 18 million. It was an SME within the meaning of the said Recommendation. B. Description of the restructuring In the period 1992 to 1994 Hartha emerged from its position of weakness and became an established company. In 1995, however, the company again encoun- tered problems (%). It was forced on more than one occa- sion to interrupt the manufacture of cotton-picker spin- dles. The restructuring plan was accepted by the executive committee of the Federal Office for Special Unification- Related Tasks (BvS) on 28 June 1996. The committee took a positive view of Hartha’s development. To implement the restructuring plan, the following financing strategy for Hartha was worked out by various creditors acting in concert. () OJ L 107, 30.4.1996, p. 4. () This was owing to several factors, including liabilities of DEM 1979 800 when the investors took over the company, the collapse of a large contract in 1995, and the need to open up new markets because of the loss of east European ones.