30.4.2003 Official Journal of the European Union L 10835 COMMISSION DECISION of 11 December 2002 on the State aid implemented by Spain for Sniace SA (notified under document number C(2002) 4824) (Only the Spanish text is authentic) (Text with EEA relevance) (2003/284[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof, Having regard to Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty, (!) and in particular Article 14 thereof, Having called on interested parties to submit their comments pursuant to the provisions cited above, (%) and having regard to their comments, Whereas: I. PROCEDURE (1) By letter dated 2 March 1998 the Commission received a complaint alleging that Sniace SA (hereinafter referred to as ‘Sniace’) had received illegal aid in the form of a subordinated loan of EUR 12 020242 (PTA 2000 million) granted on non-market terms. The Commission requested Spain to submit information thereon and, since insufficient particulars were received in reply, on 11 December 1998 it registered the case as non-notified aid. (2) By letter dated 11 April 2000 the Commission informed Spain that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. Spain submitted its comments by letter dated 5 June 2000. (3)  The Commission decision to initiate the procedure was published in the Official Journal of the European Communities (°). The Commission invited interested parties to submit their comments on the aid. In this () OJ L 83,27.3.1999, p. 1. (3 0] C 162, 1.6.2000, p. 15. (%) See footnote 2. context, it received comments from Sniace. On 10 August 2000 it forwarded them to Spain, which was given the opportunity to react thereon but chose not to. (4 By letter dated 2 October 2001 the Commission addressed an information injunction to Spain, which replied by letter dated 17 December 2001. By letter dated 19 December 2001 Sniace sent further comments and proposed that a meeting be held in order to clarify the situation. The meeting took place in April 2002. By letter dated 31 May 2002 Spain submitted additional information to the Commission. II. DETAILED DESCRIPTION OF THE MEASURE (5)  Sniace is a company based in Torrelavega, Cantabria. Sniace is highly vertically integrated and is active in the areas of forestry management and production of paper, synthetic fibres and derived chemical products. In 2000 it employed around 600 people. From 1992 to 1996 it was under the suspension of payments procedure, from which it emerged after an agreement with its main private creditors was signed on 26 September 1996. The Cantabrian Regional Government commissioned during 1996 a viability plan from the private consultancy Coypsa. The plan was agreed on by the interested parties on 29 September 1996. As part of this plan, in 1997 the company renegotiated its debts with the remaining creditors, including Social Security. In October 1998 the Commission adopted an initial negative decision on the terms of that rescheduling agreement, on the grounds of the level of the interest rates negotiated. However, in September 2000, in the light of a judgment delivered by the Court of Justice in a similar case concerning the Spanish company Tubacex (¥, the Commission decided to revoke its initial (*) Case C 34296, 9.4.1999, Rec. 1999, p. [-02459.