Brussels, 26/07/2000 (Agence Europe) - The European Commission has decided to open the formal investigation procedure as regards the aid relating to the restructuring of SKL-Motoren- und Systemtechnik GmbH. Situated in Magdeburg (Saxony-Anhalt, Germany), the company manufactures boat engines and is also active in the energy sector. The restructuring aid subject to the Commission investigation is DEM 71 million. The reasons for opening the investigation procedure are: a) Commission doubts about the ability of the restructuring plan (initiated following the decision to file for insolvency on 16 June) to restore the long term viability of the company, b) doubts as to the avoidance of undue distortion of competition through the aid and c) the proportionality of the aid to the restructuring costs and benefits. These conditions, laid down in the Community guidelines on State aid for rescuing and restructuring firms in difficulty, must be fulfilled for the compatibility of the aid The individually notified asset deal between SKL-M and Motoren- und Turbinen-Union Friedrichshafen GmbH is also included in this investigation procedure as "it can not be separately assessed from the restructuring of SKL-M".
SKL-M belonged previously to Lintra-Beteiligungsholding GmbH, a holding of then eight companies. The first restructuring concept of Lintra-holding failed end 1996 and since 1 January 2000 the company is in liquidation.