No L 272/46 Official Journal of the European Communities 25. 10. 96 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 29 May 1996 concerning certain measures granted by Italy in favour of Breda Fucine Meridionali SpA (Only the Italian text is authentic) (Text with EEA relevance) (96/614/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Articles 92 and 93 thereof, Having regard to the Agreement on the European Economic Area, and in particular Articles 61 and 62 thereof, Having given the interested parties notice to submit their comments, in accordance with the abovementioned provi- sions, Whereas: I By letter dated 10 March 1995 the Commission informed the Italian Government of its decision to initiate the procedure pursuant to Article 93 (2) of the Treaty in respect of the aid received by Breda Fucine Meridionali (hereinafter referred to as ‘BFM). Following a formal complaint by a competitor of BFM, the Commission, by letter dated 17 October 1994, had asked the Italian authorities for information on the aid allegedly received by BFM. According to the information received by the Commis- sion: ’ — BFM was controlled by Finanziaria Ernesto Breda, which in turn was part of the EFIM group, a public holding company which went into liquidation in July 1992, Finanziaria Ernesto Breda was compulsorily wound up by a Decree of the Italian Minister for the Treasury of 11 March 1994. According to the Decree, the company was irreversibly insolvent, with liabilities of Lit 803 billion, BFM specialized, among other things, in the supply of railway equipment, and in particular steel crossing frogs, the same market as the one on which the firm which lodged the complaint operates. BFM’s produc- tion of crossing frogs accounted for more than 40 % of its total output, BFM was falling into a deplorable financial situation. Information in the Commission’s possession suggests that: — in 1992 BFM recorded losses had amounted to some Lit 27,6 billion on turnover of Lit 18,5 billion, — in 1993 its losses had risen to Lit 36 billion, while turnover had fallen to Lit 13,5 billion, — its debts reached Lit 88,7 billion in 1993, compared with share capital of Lit 17 billion, reduced to zero as a result of the firm’s losses, in the period 1985 to 1994, Finanziaria Ernesto Breda and EFIM bailed out BFM several times by providing recapitalization funds, making good its losses and granting loans,