Brussels, 04/11/2002 (Agence Europe) - The European Commission has refused to give its green light to the granting of additional aid of EUR 15.7 million for the German porcelain manufacturer, Kahla. The Commission's decision concerns two companies in particular: Kahla I, a porcelain producer based in Thüringen (formerly Eastern Germany), privatised in 1991 then declared bankrupt in 1993 after heavy losses; and Kahla II, created in 1993 to continue the activities of the bankrupt company. The Commission had begun some ten measures in favour of Kahla I and approved aid granted, amounting to EUR 37 million. Regarding Kahla II, that it did not consider as a separate business, the Commission examined 23 measures and concluded that all of them constituted aid. Kahla had also been in difficulty in 1996 and the Commission assessed the aid awarded during that period under the rescue and restructuring guidelines. It considered that such aid had not been granted on the basis of any sound restructuring plan foreseeing measures to offset the negative effects of the aid for competitors. Also, the private financing brought in by the investor is not a substantial contribution to the restructuring. (See also EUROPE of 30 November 2001, p.16).