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[November 2001]
EC Rules Against Graf
The European Commission has ruled that Graf von Henneberg, the Ilmenau (Germany) based porcelain manufacturer, must repay state aid totalling 71.3 million euros - paid to it and a predecessor company - because the aid was paid in circumstances that break EU rules.
The decision follows an in-depth inquiry by Brussels, which has found that the currently existing Graf von Henneberg is jointly liable for the repayment along with its predecessor, which carried the same name. Graf von Henneberg is located in the former East German laender of Thuringia and was privatised in 1991. It suffered losses until it filed for bankruptcy in July 1995, when the administrator created a new company under the same name, which continued with the same activities.
Both companies received aid, which the Commission ruled is unlawful because it did not comply with EU guidelines for rescuing and restructuring firms in difficulty.
ENDS