(98/C 390/04) (Articles 92 to 94 of the Treaty Establishing the European
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15.12.98 EN Official Journal of the European Communities C 390/7 STATE AID CØ42/98 (ex NNØ54/95) Germany (98/C 390/04) (Text with EEA relevance) (Articles 92 to 94 of the Treaty establishing the European Community) Commission notice pursuant to Article 93(2) of the EC Treaty to other Member States and interested parties on aid for setting up CD Albrechts GmbH, Thuringia, former Pilz Group, Bavaria In the letter reproduced below, the Commission Pilz actually consists of a group of companies. The informed the German Government of its decision to group is owned by Mr Reiner Pilz and his family. They initiate proceedings under Article 93(2) of the EC had set up the holding company R.ØE. Pilz GmbHØ@ØCo. Treaty. Beteiligungs KG, Kranzberg, which held the shares of the joint venture. ‘1.ÙPROCEDURAL ASPECTS The other parent company, Robotron AG, was liquidated by the THA in 1992 and the Pilz group took With letters dating 9 November 1994 and 3 March 1995 over its shares in the joint venture. Due to the fall of the the German authorities notified aid measures in favour East European market the joint venture, which had been of the abovementioned enterprises. Many questions integrated in the Pilz group, had serious sales problems remained open and on further requests for information and the forthcoming bankruptcy put the whole Pilz the German Government replied with letters dated 22 group in jeopardy. No private investor could be found August 1995 and 18 January 1996. After several further and in order to avoid the opening of bankruptcy informal requests, the Commission directed a catalogue proceedings two public financing institutions of of questions to the German authorities with a letter Thuringia, TIB (Thüringer Industriebeteiligungs GmbH) dated 25 November 1996 which was answered by letter and TAB (Thüringer Aufbaubank) took over the joint dated 17 April 1997. During a meeting on 22 and 23 venture with a contract of 7 March 1994. TIB’s partici- September 1997 in Erfurt representatives of the German pation was 98Ø% and TAB’s participation was 2Ø%. Government answered further questions and at their Afterwards the joint venture changed its name and was request the Commission agreed that a final statement converted into CD Albrechts GmbH. In 1994 it would be submitted in writing. This reached the produced losses of DEM 109 million and in 1995 debts Commission by letter dated 20 January 1998. amounted to DEM 134 million. The joint venture employed about 250 workers, which were reduced to approximately 220 in 1997. To the Commission’s 2.ÙBACKGROUND knowledge the Pilz group employed more than 550 workers but the exact number of employees is unknown. Figures concerning balance sheets, profit and loss 2.1.ÙThe beneficiaries accounts, etc. have not been submitted. Aid measures served to establish PilzØ@ØRobotron Since the beginning of 1994 the Land of Thuringia has GmbHØ@ØCo. Beteiligungs KG, Albrechts (hereafter: tried to sell the joint venture expecting sales proceeds of joint venture) which was the joint venture between an up to DEM 160 million. The final attempt to sell to a east German company, the computer technology Japanese company failed since the potential investor was company of the GDR, VEB Robotron, Dresden, and a put off, in particular, by a possible recovery claim of west German company, Pilz, situated in Kranzberg, illegally awarded State aid. Bavaria. Pilz took over one third, Robotron took over two thirds of the joint venture. In 1992, as part of the joint venture, a plant for manufacturing CDs, speakers Meanwhile TIB and TAB have tried to consolidate the and trays was built in Albrechts, Thuringia an area situation of the joint venture, which, in particular, has eligible for regional aid pursuant to Article 92(3)(a) of suffered from its legal links to the Pilz group and from the EC TreatyØ(Î). The plant started its operations in the reputation associated with Pilz. Thus, in 1996 TIB December 1992. founded a 100Ø% subsidiary company, CDA Datenträger Albrechts GmbH. On 31 December 1997 this new legal entity bought the assets of the joint venture and took over all its operational activities. However, the joint (Î)ÙNØ464/93; NØ613/96, valid till the end of 1999. venture has remained legal owner of the premises, C 390/8 EN Official Journal of the European Communities 15.12.98 buildings, infrastructure, etc., which now are being let to Therefore, also, the information submitted by the CDA Datenträger Albrechts GmbH. The German auth- German authorities remained highly contradictory and orities informed the Commission that in 1997 the new mostly incomprehensible and there were no results at company expected [.Ø.Ø.]Ø(Ï) for 1998 a positive annual hand from the enquiries of the prosecution office. result and [.Ø.Ø.] are foreseen. The German Government has pointed out that a recovery of any aid from the joint venture would inevitably result in bankruptcy since it is 2.2.ÙThe aid measures overindebted. Concerning these most recent devel- opments no further information was made available, 2.2.1.ÙAid measures in connection with the [.Ø.Ø.]. Due to this lack of information the Commission is initial phase (1991/1992) in no position to evaluate the effect and circumstances of this transaction. Investment costs for establishing the CD plant in Thuringia were estimated at a total of DEM 263 million. Of which R.ØE. Pilz GmbHØ@ØCo. Beteiligungs KG, the holding company owned by Pilz, contributed Meanwhile, in July 1995, the Pilz group had filed for approximately DEM 88 million which corresponded to bankruptcy. It should be noted that the former holding its one third share in the joint venture. The remaining company of the joint venture, R.ØE. Pilz GmbHØ@ØCo. costs of DEM 175,5 million, corresponding to Beteiligungs KG, does not legally belong to the group as Robotron’s two thirds share in the joint venture, were such and is not involved in the pending bankruptcy brought up by means of loans as described below. procedure. In February 1995 the public prosecution office of Bavaria intervened against the Pilz group on the charges of defrauding of subsidies. The indictment was The entire financing of the project was arranged in a extended to fraudulous bankruptcy and fraud in 40 credit contract which, on 17 May 1991, was concluded cases. Owing to the complications of the financial trans- between a consortium of private banks (Dresdner Bank actions and the non-transparent structure within the Pilz AG, Frankfurt/M.; Bayerische Vereinsbank AG, group the court hearing only started in April 1997. München; Berliner Bank AG, Berlin; Westfalenbank AG, Bochum) on one side as lender, and Robotron AG, R.ØE. Pilz GmbHØ@ØCo. Beteiligungs KG and the joint venture itself on the other side as borrowers. The contract (Ï)ÙBusiness secret. covered loans totalling DEM 285,15 million as follows: (in million DEM) Beneficiary Robotron AG Joint venture Pilz I 2,0Ø(*) II 153,0Ø(**) III 1,0Ø(*) IVa 65,85Ø(**) IVb 10,8Ø(**)Ø(&) V 20,0Ø(*) VI 10,0Ø(*) VII 22,5Ø(**) Total 22,0 175,5 87,65 (*)ÚSubsequent contribution to the joint venture (DEM 33 million nominal capital of the joint venture). (**) Covering the investments. (&) Bridge financing until the investment grants and tax refunds were paid out. 15.12.98 EN Official Journal of the European Communities C 390/9 Pilz brought up its DEM 88 million contribution by 0,25Ø% and subsequently 0,5Ø% p.a. The THA had means of investment grants and tax refundsØ(Ð) (bridged intervened for the guarantee with an amount of DEM by the abovementioned credit No IVb) and supposedly 120 million. contributed DEM 11 million of its own money. The rest of the DEM 88 million was covered by the DEM 65,85 Owing to the fact that investment grants and tax refunds million loan No IVa (extended according to the needs of awarded to R.ØE. Pilz GmbHØ@ØCo. Beteiligungs KG the company, interests varied but the minimum was set at were higher than expected, the banks have extended the 7Ø%). This loan was secured by an 80Ø% deficiency DEM 65,85 million loan only to an amount of DEM guarantee (DEM 52,72 million) by the Land Bavaria 54,7 million. In return, the Land Bavaria has changed its based on an approved aid schemeØ(Ñ). original 80Ø% deficiency guarantee (DEM 52,72 million) to a 100Ø% deficiency guarantee (DEM 54,7 million) in 1994. In March 1994 Bavaria had been held liable for the In 1992, based on the THA-measures aid schemes of credit with DEM 3 million for the first time. This DEM 1991 and 1992 (approved by the CommissionØ(Ò)) the 3 million claim for repayment of the loan, which in this THA awarded a DEM 190 million 100Ø% deficiency context had been assigned to Bavaria by law was waived. guarantee, covering the major part of the loans (credits A second and final time, in July 1995, due to the I, II, V and two thirds of VII) to Robotron AG and the insolvency of R.ØE. Pilz GmbHØ@ØCo. Beteiligungs KG, joint venture. The initial fee for the guarantee was the Land Bavaria had to repay the credit entirely and subsequently became a creditor of R.ØE. Pilz GmbHØ@ØCo. Beteiligungs KG by legal subrogation. (Ð)ÙJoint task of improvement of regional economic structures, 20 and 21 Rahmenplan. (Ñ) Gesetz über die Übernahme von Staatsbürgschaften und As can be seen from the above, aid measures in Garantien des Freistaates Bayern. connection with the establishing of the CD plant (Ò)ÙState aid NNØ108/91 SG(91) D/17825; State aid E 15/92.