20. 3. 91 Official Journal of the European Communities No L 73/27 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 2 May 1990 on aid granted by the Greek Government to a cement manufacturer (Halkis Cement Company) (Only the Greek text is authentic) (91/144/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European - Economic Community, and in particular the first subpara- graph of Article 93 (2) thereof, Having given notice in accordance with thé above Article to interested parties to submit their comments, and having regard to those comments, Whereas : In the summer of 1988 reports appeared in the Greek press, according to which the Greek Government had decided to grant aid to the Halkis Cement Company, hereinafter referred to as ‘Halkis’. The aid would take the form of a conversion of debt into capital on the basis of Decision No 1270 of the Governor of the Bank of Greece dated 1 April 1988, amended by Decision No 1330 dated ‘ 14 July 1988. By letter dated 5-August 1988 the Commission informed the Greek Government that any capitalization of Halkis’ debts by public institutions was likely to -constitute State aid, which cannot be put into effect without prior notifi- cation to and approval by the Commission, in accordance with Article 93 (3) of the EEC Treaty. ’ The Greek Government replied by letter dated 17 October 1988 that a conversion of Halkis' debts into capital had not yet taken place. A shareholders’ meeting was to take place shortly and this meeting was expected to decide to increase Halkis’ capital. The Greek Govern- ment did not indicate whether it agreed with the Commission that a conversion of Halkis’ debts should be notified pursuant to Article 93 (3). ' The Commission thereupon reminded the Greek Govern- ment, as well as Halkis, by letters dated 28 November 1988, of the necessity of an early notification of such conversion of debt into capital and of the dangers of aid granted unlawfully, as such aid may be subject to a reco- very order. Halkis replied by letter dated 16 December 1988, stating that its shareholders’ meeting had decided on 22 November 1988 to increase the company’s capital by Dr 42 300 million ; the shareholders’ preferential rights to participate in this share issue would expire on 24 December 1988. No reply or notification was received from the Greek Government. On the basis of the little information available at the time, the Commission took the view that the transforma- tion into capital of Halkis' debts — or part of these — was likely to constitute State aid, in view of the grave financial situation of this company. The Commission noted that Halkis’ net worth had dropped to minus Dr 24 512 million by the end of 1987, due to losses sustained every year since 1982. The Commission also