commiss decis juli aid provid unit kingdom govern rover group undertak produc motor vehicl english text authent eec commiss european commun regard treati establish european econom commun subparagraph articl thereof notic accord articl interest parti submit comment letter march perman repres unit kingdom govern notifi commiss intent provid capit rover group context sale remain car jeep busi group british aerospac notif statement unit kingdom parliament march british aerospac declar interest acquir govern sharehold compani expect negoti exclus basi conclud april march commiss decid initi procedur laid articl eec treati respect notifi aid plan unit kingdom govern capit inject reduc financi burden debt repay oblig rover group commiss consid confer competit advantag rover group vi vi commun car manufactur propos measur contain aid element fall articl eec treati aid element assist measur contest unit kingdom govern main reason open procedur danger distort competit sensit motor vehicl industri absenc figur propos debt write lack inform addit restructur effort letter date march commiss gave unit kingdom govern notic submit comment accord articl eec treati member state parti notic submit comment ii unit kingdom author present comment procedur letter date april june june juli juli provid detail inform precis term agreement restructur effort undertaken rover group futur group activ financi fiscal situat futur prospect unit kingdom author commun princip term sale agreement reach march unit kingdom govern intend make capit inject million rover group elimin compani indebted british aerospac immedi pai million unit kingdom author sharehold rover group british aerospac meet cost futur restructur rover group rover group million current level million trade tax loss trade tax loss remain rover group parliamentari assur success unit kingdom govern relat rover group oblig substanti modifi cover oblig incur rover group complet sale unit kingdom author give warranti expect sale save formal warranti titl govern sharehold british aerospac undertak sell austin rover land rover busi trademark year event occur british aerospac pai penalti million unit kingdom govern agre sale effect approv commiss european commun british aerospac sharehold light experi gather similar exercis unit kingdom author conclud hold public auction austin rover open parti state reach conclus full account commerci advic submit rover group board busi surviv auction consid unsolicit express interest made british aerospac acquir govern sharehold rover group british aerospac period exclus negoti unit kingdom author made clear parti made offer consid final decis british aerospac offer unit kingdom author enter contract british aerospac number confidenti express interest parti receiv amount specif offer corpor plan forese invest restructur cost total million addit consider reduct plan assembl compon capac austin rover order increas product capac util plan envisag global capac reduct vehicl assembl compon resolv present overcapac concern land rover addit capac cut foreseen undertaken argument put forward unit kingdom author support aid propos rover group summar propos aid consist object creat competit structur vehicl industri commun view line commun object polici sector aid directli link unit kingdom author object return rover group oper disciplin market capit inject sale group prevent elimin heavi accumul debt group sold sale contribut wider restructur industri europ present foreseen futur accord disciplin open market fact buyer competitor preserv competit european vehicl manufactur reduc number propos sale group british aerospac complet unit kingdom govern withdraw direct involv vehicl manufactur elimin futur state particip financ rover group unit kingdom author price paid british aerospac result normal process negoti repres reason acquisit price determin price issu consid risk inher acquir busi consider compani long histori loss make reach profit oper level cash flow expect british aerospac remain neg year time compani oper matur industri underli global overcapac world level subject intens competit rover group complet reorient special manufactur qualiti car suitabl model rang year sale exclud warranti convent sale busi seller expect assum british aerospac addit agre retain core busi year final account substanti potenti benefit british aerospac foregon result agre cap tax loss relief accumulatd rover group capit inject million design british aerospac meet condit rover group liabl pai unit kingdom govern maximum million member state parti concern submit observ abovement procedur iii propos sale rover group british aerospac constitut final withdraw unit kingdom govern motor vehicl industri british author acquir major sharehold british leyland motor corpor million inject form equiti capit british leyland public limit compani chang rover group plc present decis context previou commiss decis state aid propos rover group british leyland decis june commiss rais object propos unit kingdom govern grant million british leyland form million share capit million financi guarante million form long term loan aid measur support restructur plan reduc bl instal car capac current product level laid ryder report notif aid plan mention million loan need period biannual report restructur effort aid provis monitor commiss decis june commiss rais object modif origin restructur plan adopt time payment type assist chang total figur billion long term loan million provid form capit chang aid measur made unit kingdom author view declin british leyland share unit kingdom market gener object corpor plan origin programm decis march commiss rais object addit modif origin restructur plan adopt type assist chang amount slightli increas unit kingdom govern inject million equiti capit million correspond remain balanc billion budget fix addit aid million decis juli commiss author provis million equiti capit support corpor plan amount million earmark loss make activ compani million social measur plan consider reduct vehicl capac foreseen includ closur biannual report restructur measur aid provis volum invest notifi monitor commiss decis januari commiss announc unit kingdom govern contribut british leyland remain million capit foreseen time addit propos million cover capit reduct truck busi withdrawn decis march commiss approv capit inject million rover group order facilit privat truck bu subsidiari aid cover past futur restructur cost busi includ substanti capac reduct buse truck quarterli report restructur monitor commiss iv british leyland group made profit financi year own time manufactur facil unit kingdom car busi commerci vehicl busi special product british leyland wholli partli own manufactur plant oversea make total manufactur plant world accord subsequ corpor plan plant close late earli origin employ job maintain reduct employ due closur ration remain plant fact unit kingdom govern decid return group privat sector dispos oversea particip car busi unit kingdom luxuri car divis jaguar car sold privat sector commerci vehicl busi part servic compon busi privat total group busi sold restructur account commiss approv aid measur group posit european car market decreas group sold car unit kingdom market correspond market share export car rover group sold car unit kingdom market correspond market share export car present rover group consist main busi car busi austin rover jeep busi land rover realiz total turnov billion group hold minor particip subsidiari import particip daf bv manufactur structur busi car assembl take place cowlei longbridg car bodywork swindon car engin produc drew lane longbridg car gearbox llanelli longbridg jeep jeep compon manufactur solihul rover group obtain product sale result capac util abovement plant exce rover group produc car divis car model jointli develop honda honda austin rover cooper develop steadili agreement conclud late product jointli develop model account austin rover product proport car honda label car proport jointli develop model total car product rapidli increas year introduct honda concerto result proport honda label car increas earli rover group increasingli depend honda compon suppli honda suppli austin rover type engin onward honda engin plant swindon suppli addit engin honda concerto concern state technolog consider amount invest rover group modern car assembl line longbridg autom jeep assembl line pronounc call semi manual manufactur austin rover compon part product outdat engin transmiss seri year examin compat common market propos public intervent support rover group commiss verifi extent measur aid element articl eec treati propos debt write million rover group obtain british aerospac take place discharg group financi charg debt repay pai come year acquisit price million buyer prepar pai inferior propos capit inject british aerospac acquir rover group neg price normal market condit exclud privat sharehold provid sum debt write compani exce acquisit price circumst present case debt write propos unit kingdom govern give rover group competit advantag relat commun car manufactur assum propos acquisit price reflect fairli real net worth compani market conclud capit inject form debt write propos constitut aid articl eec treati note notif propos measur unit kingdom govern disput aid element debt repay unit kingdom govern commit grant discretionari aid rover group futur commun unit kingdom govern procedur intent support part rover group invest million realiz assist area region grant framework region select assist scheme fact region invest place elig region aid ceil net grant equival approv commiss unit kingdom author commit limit region assist million aid provid rover group affect trade member state intens intra commun trade product manufactur rover group fact passeng car trade member state amount million unit unit export unit kingdom member state rover group export vehicl member state total vehicl product unit kingdom unit kingdom govern propos capit inject million correspond net financi debt rover group moment acquisit consolid balanc sheet rover group show net indebted million decemb unit kingdom govern sum repres true indebted rover group continu busi sum million augment million order account restructur cost aris rover group commerci vehicl activ year commiss accept decis march restructur cost aris rover group monei temporarili reduc debt remain busi shown quarterli monitor report prepar commiss decemb rover group remain commit appli million restructur sum depress true level rover group indebted connect note closur commerci vehicl plant schedul place inclus item take rover group indebted decemb million order arriv real level indebted moment sale unit kingdom author claim cost strike solihul land rover amount million increas debt half due interest charg estim million account debt calcul indebted group moment acquisit million commiss conclud close scrutini debt calcul incorrect item includ calcul unit kingdom author consid true financi debt work capit advanc financ compani million ii accrual fall due year million iii land rover strike million iv increas debt half million item add total million commiss consid total net financi debt rover group million arriv conclus commiss account consider facil design financ stock finish vehicl period dispatch vehicl consign distributor moment sale financ provid associ compani call wholesal vehicl financ wvf own rover group lombard north central financi year item list statutori account rover group credit item valuat stock effect account rover group auditor cooper amp lybrand agre show financ provid wvf separ item list creditor fall due year note rover group oblig list item borrow practic respect vari unit kingdom compani respect commiss consid item repres clear cut financ work capit constitut financ stock ii main element provis long term accrual liabil link guarante offer car sold unit state longer guarante period requir unit state market similar guarante cover year sale car consid rover group auditor financi debt commiss conclud accrual constitut normal oper cost iii direct indirect cost aris strike begin consid financi debt ordinari oper cost unit kingdom author provid evid land rover sale month show sale affect higher sale effect strike mitig sell stock produc financi benefit compani reduct stock cost iv increas debt half due interest charg million debt million million actual liabil creditor accrual form part half year result unit kingdom author rover group oper profit million addit except profit expect sale asset profit subsidiari period neg impact interest payment profit overestim half debt consider higher interest payabl interest receiv correspond million commiss receiv evid debt situat significantli deterior half light commiss accept addit million part real debt level end correspond interest payment financi debt million paid half exclud restructur provis million bring estim net indebted june million includ million futur restructur cost commerci vehicl busi rover group conclus commiss consid propos million debt write million work capit consid financi debt contrast letter april unit kingdom author claim capit inject relat rover group indebted provid work capit provis work capit aid correspond oper aid context establish polici commiss accept oper aid compani normal dai dai busi financ resourc aid state assist benefit oper neg effect competit confer direct cost advantag vi vi competit time meet criteria set articl treati case oper aid sector automobil sensit commun level establish real net financi debt million commiss consid normal market econom condit conclus reason write total debt indispens order sell compani privat investor respect note audit net worth group end correspond net book asset minu net borrow establish million estim establish commiss expert real net worth compani inferior amount take account neg cash flow occur year compani oper futur bear signific busi risk import note compani excess indebt debt turnov ratio rover group approxim compar commun car manufactur vi articl eec treati list form aid compat common market compat treati determin context commun singl member state order safeguard proper function common market take account principl articl except principl articl set articl constru narrowli aid scheme individu aid award scrutin appli commiss satisfi free plai market forc aid induc prospect aid recipi adopt action contribut attain object regard except provid articl aid promot facilit develop area applic aid measur benefit except provid articl standard live abnorm low underemploy region concern case aid measur incorpor requisit featur aid facilit develop econom area mean articl rover group product plant locat assist area propos aid write million debt award unit kingdom region aid system unit kingdom govern fact attempt justifi aid question region ground exempt provid articl result forego aid question intend suit promot execut import project common european interest remedi disturb unit kingdom economi unit kingdom govern invok regard except provid paragraph articl eec treati favour aid facilit develop econom activ commiss restructur aid compat common market number criteria fulfil criteria view light principl articl aid develop sector commun standpoint alter trade condit extent contrari common interest criteria systemat verifi order assess compat elimin total debt establish commiss million sector aid limit case justifi circumst industri concern aid lead restor long term viabil resolv problem preserv statu quo put decis inevit competit report point court justic judgment case phillip morri ecr european automobil industri oper high level capac util virtual car manufactur back profit result consecut year record car sale europ restructur effort undertaken manufactur risk emerg overcapac commun rule medium term expans plan announc produc increas japanes penetr term direct import invest increas opportun import countri undervalu currenc world market level overcapac million car year restructur plan commun car manufactur aim consider reduct capac contribut reduc danger futur surplu capac problem sector corpor plan present rover group approv british aerospac cover period foreshadow substanti reduct car assembl compon capac order central object plan transform rover group medium term volum produc specialist produc offer limit rang upper market model higher ad profit margin rover group succe establish promis market nich assum continu joint ventur honda product develop restor long term viabil restructur involv number measur varieti activ time requir consider compar effort undertaken group sector ii grant short period aid progress reduc link restructur sector concern propos measur debt write present discretionari aid unit kingdom govern award rover group unit kingdom govern undertaken award discretionari aid rover group futur abovement amount region assist acquisit british aerospac onward restructur effort oper cost enterpris cover compani cash flow extern sourc british aerospac account part rover group current debt due unaid restructur effort undertaken commerci vehicl busi year amount million includ capac reduct propos aid link restructur rover group year written commit british aerospac unit kingdom author execut corpor plan iii intens aid proportion problem design resolv distort competit minimum provis million debt write regard excess relat restructur invest cost million aid correspond total restructur cost intens aid award relat total cost restructur plan proport problem plan resolv degre overcapac compani elimin reduct capac commiss accept total indebted rover group amount million written place compani favour financi posit commun competitor carri consider level debt aid buyer complet financi debt million commiss acknowledg extent commerci risk advanc unit kingdom author british aerospac assum takeov take account consider invest restructur cost rover group undertak british aerospac publicli engag contribut commiss consid minimum amount million british aerospac repres million financi debt establish commiss commensur commerci risk born owner reduc origin propos million debt write million debt write million correspond total restructur cost line reduct capac pursu rover group commiss view reduct debt written ensur intra commun trade affect contrari common interest distort intra commun competit remain limit futur distort competit limit fact rover group specialist produc retir gradual volum car market forecast forese significantli stronger demand upper market model volum car commiss consid trade distort british aerospac capit tax advantag rover group commiss object transfer capit tax benefit rover group british aerospac limit unit kingdom tax legisl iv industri problem unemploy transfer member state implement rover group corpor plan give rover group possibl increas market share advers effect util capac commun car manufactur aid rover group lead job loss member state conclus aid form debt write million award rover group case sale british aerospac price million lead restor compani viabil propos restructur contribut avoid structur problem commun motor vehicl industri face futur reason commiss consid aid facilit develop sector concern commun level advers affect trade condit extent contrari common interest limit trade distort effect aid depend larg futur restructur carri anticip period framework decis commiss restructur rover group commerci vehicl busi product plant close year ensur aid rover group distort competit market present advers affect trade condit commun extent contrari common interest commiss consid except articl applic aid grant rover group author valid condit respect order assur trade condit alter extent contrari common interest adopt decis articl aid rover group amount million notifi commiss form capit contribut aim debt write award framework acquisit british aerospac compat common market pursuant articl maximum amount million provid unit kingdom govern alter propos term sale commun commiss acquisit price paid british aerospac million british aerospac bear futur restructur cost rover group million current million trade tax loss trade tax loss remain rover group british aerospac sell core busi rover group year incur penalti million except amount debt write limit million ensur aid exclus repay financi debt rover group refrain grant aid form capit contribut form discretionari aid rover group except region grant exceed million support futur invest plan rover group award invest plan commun commiss fulli realiz ensur british aerospac complet rover group corpor plan end accord detail commun commiss ensur underspend overevalu debt item commun commiss repaid unit kingdom govern complet corpor plan ensur rover group pass privat ownership longer benefit parliamentari assur relat oblig purchas refrain guarante oblig incur rover group complet sale implement corpor plan unit kingdom govern provid commiss half yearli report rover group trade perform capac product price polici intra commun export product detail survei restructur measur undertaken previou month articl remain part notifi aid rover group form capit contribut amount million constitut state aid incompat common market mean articl eec treati award articl unit kingdom inform commiss measur compli decis month notif articl decis address unit kingdom great britain northern ireland brussel juli commiss peter sutherland member commiss aid form debt write calcul net grant equival relat futur invest applic