L 335/48 Official Journal of the European Union 21.12.2005 COMMISSION DECISION of 20 July 2005 on a State aid implemented by Germany for a meat processing company, Greuflener Salamifabrik GmbH (notified under document number C(2005) 2725) (Only the German text is authentic) (2005/920/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 called on interested parties to submit their comments pursuant to the provision cited above (!) and having regard to their comments, Whereas: I. PROCEDURE The measure was notified in accordance with Article 88(3) of the EC Treaty by letter of 6 November 1997. It appeared that the beneficiary had already received a related aid at an earlier stage. Therefore, the measure was registered as non-notified aid. By letters dated 4 February 1998, 10 June 1998 and 4 February 1999 Germany provided the Commission with further information. By letter dated 7 June 1999 the Commission informed Germany that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. The Commission Decision to initiate the procedure was published in the Official Journal of the European Commu- nities (3. The Commission invited interested parties to submit their comments on the aid. The Commission received comments from interested parties. It forwarded them to Germany, which was given the opportunity to react; its comments were received by letter dated 23 February 2000. () O] C 238, 21.8.1999, p. 15. () See footnote 1. () By letter of 18 May 2005, registered as received on 23 May 2005, Germany asked the Commission to take a Decision on the basis of the information available to it, pursuant to Article 7(7) of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (3). II. DESCRIPTION The benefiting company, Greulener Salamifabrik GmbH, was a meat-processing company producing and marketing several kinds of sausages and meat products. The beneficiary did not slaughter animals itself but processed meat. According to information provided by Germany, the insolvency procedure was initiated for Greuflener Salamifabrik on 1 October 1999. The Commission was not informed about the outcome of the procedure. However, it would appear that at least the assets of the company are still operating under the name ‘Greuflener Salami- und Schinkenfabrik GmbH'. The remarks of the present Decision, however, refer to the pre-insolvency company GreufSener Salamifabrik GmbH. A steady decrease in the turnover of Greuflener Salami- fabrik led to losses and to a negative operating cash flow from 1995 onwards. A document prepared by Dr. Zimmermann & Partner in September 1996 points to an extremely critical cash flow situation of the company. The fact that the company was in financial difficulty was stated in the Commission Decision initiating the procedure (¥} and has not been contested in the course of the investigation procedure. A reorgani- sation of GreufSener Salamifabrik was considered necessary. To finance this reorganisation, the company took out additional loans (a loan of DEM 375 000 at the Dresdner Bank AG and a loan of DEM 725 000 at the Sparkasse Erfurt) in the fourth quarter of 1996. For both these loans an 80 % State guarantee, thus covering the total amount of DEM 880 000, was granted via the Thiiringer Aufbaubank. The guarantee was not notified to the Commission, contrary to the provisions of the Commission letter to Member States SG(89) D/4328 of 5 April 1989, hereinafter referred to as Aid 1. (®) OJ L 83, 27.3.1999, p. 1. Regulation as amended by the 2003 Act of Accession. (*) See footnote 1.