20.10.2000 Official Journal of the European Communities L 267/53 COMMISSION COMMISSION DECISION of 16 May 2000 on State aid granted by Spain to Asociacion General Agraria Mallorquina SA (AGAMA) (notified under document number C(2000) 1401) (Only the Spanish text is authentic) (Text with EEA relevance) (2000/631/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), Having regard to Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products (1), After giving notice to the interested parties to submit their comments, in accordance with the above Article (%), Whereas: I. PROCEDURE The Commission was informed via a complaint that Spain had granted State aid to the Asociacién General Agraria Mallorquina SA (hereafter ‘AGAMA). By telex dated 4 December 1995, the Commission asked the Spanish authorities for information on the aid and sent a reminder by telex dated 7 January 1997, but received no reply. By letter dated 16 May 1997, the Commission informed the Spanish Government of its decision to open the procedure provided for in Article 87(2) of the Treaty with regard to the aid. By letters dated 14 July 1997, 22 April 1998, 20 May 1998 and 18 March 1999, the Spanish authorities submitted their comments. OJ L 160, 26.6.1999, p. 48. O] C 204, 4.7.1997, p. 6. () The Commission decision to open the procedure was published in the Official Journal of the European Communi- ties (). The Commission gave notice to the interested parties to submit their comments on the aid. The Commission has received no comments from the interested parties. II. DETAILED DESCRIPTION OF THE AID The beneficiary of the aid granted by the Spanish authorities was the company AGAMA, which processes and markets milk products in Majorca (Balearic Islands). AGAMA is the only company involved in the industrial processing and marketing of milk products in the Balearic Islands. In August 1990, AGAMA announced that it had suspended payments. The Government of the Balearic Islands decided to intervene, via the publicly owned company Semilla, following a feasibility study carried out by Inmark SA. This study envisaged the application of a number of measures within AGAMA to ensure its viability, inter alia, staff reductions, renegotiation of the company's debt with its creditors and an injection of capital. Semilla advanced AGAMA ESP 176 million (EUR 1057 781,30), i.e. 20 % of its debt with private financial institutions, which it then repaid. The insti- tutions  concerned  waived ESP 706  million (EUR 4 243 145,46), equal to 80 % of the total debt of ESP 882 million (EUR 5 300 926,76). () See footnote 2.