Brussels, 19/02/2003 (Agence Europe) - The European Commission has initiated the formal investigation procedure with respect to various aid measures to Herlitz PBS AG a leading German stationery manufacturer. These measures were notified by Germany as rescue aid but the Commission has doubts about this on several levels. In financial difficulty, Herlitz AG, the parent company, Herlitz PBS AG as well as other subsidiaries, filed for insolvency in 2002. Germany informed the Commission that Herlitz PBS AG was no longer insolvent, however no information was provided on the specific details of why this should be the case. After denying any aid, in July 2002, Germany informed the Commission that a loan of € 1 million had been paid out to Herlitz PBS AG, as rescue aid. The Commission has doubts as to the identity of the beneficiary because this loan was intended to ensure the execution of a sales contract between Herlitz PBS and its subsidiary Falken Office Products GmbH, intended to keep the latter from insolvency. Hence the Commission cannot exclude that in reality it constitutes part of a restructuring package for the Herlitz Group as a whole. The Commission is also investigating whether such measures are really rescue aid or could in fact have been used to restructure the whole Herlitz Group. This hypothesis is reinforced by the fact that Germany provided an insolvency plan for Herlitz PBS AG, which comprises numerous waivers of debt from public creditors. Such measures in stead of being rescue aid - could indeed constitute steps in the restructuring process. The Commission at this stage does not possess all the relevant information and has therefore requested that Germany provide it with more information to help in with its enquiries.