Furthermore, the are said to have signalled their agreement to the proposed arrangement in the negotiations preceding the initiation of the arrangement procedure.

The beneficiary bases his analysis mainly on a report by the auditing company EKORDA dated 7 July 2004, which the allegedly had at its disposal before the creditors' vote on 9 July 2004. No evidence, however, was submitted showing that this was indeed the case.

Table 26 indicates that under the Ernst&Young study the Social Security Office would recover 47,7 % of its claims, Lower Silesia Region Tax Office would recover 30,6 %, Wrocław Psie Pole Tax 85,8 %, Wrocław City Council 18,2 %, the Lower Silesian Regional Office would recover the entirety of its claims, the State Fund for the Rehabilitation of the Disabled would recover 38,9 % and the Ministry of Finance 2,1 %.

Liabilities of PLZ Hydral vis-à-vis Wrocław Psie Pole (PLN thousand)

In 1998, the company's liabilities vis-à-vis public creditors based on claims arising under public law (i.e. claims from the Social Insurance Office, the Lower Silesia Region Tax Office, Wrocław Psie Pole , Lower Silesia Regional Office, Wrocław City Council, the State Fund for the Rehabilitation of the Disabled) amounted to PLN 29 million.

This amount represents the recovery costs calculated by Wrocław Psie Pole .

They submitted a letter of 6 July 2004 that had been sent by the Tax Directorate of the Slovak Republic to the subordinate tax , instructing it not to agree with the arrangement proposed by the beneficiary because it was unfavourable for the State.

The privileged position of the tax was due to the fact that some of its receivables included in the arrangement procedure were secured in connection with the deferral of the beneficiary's tax debt in 2002 and 2003 (see paragraph 17).

It was established that the agreement contained the same debt arrangement conditions for both the private creditors and the : 13,3 % of the debt was to be paid to the creditors within a prescribed period, a requirement with which the recipient complied. The remaining 86,7 % was written off.

and , Child Benefit Office (NI), Windsor House, 9-15 Bedford Street, Belfast, BT2 7UW

The State aid granted to the recipient comprises the amount of the debt written off by the under the arrangement procedure, which is SKK 9730739 (EUR 256000).

The claims forgone by the amounted to SKK 416515990 (EUR 11 million).

It is not clear, however, for what reason the tax suspended tax execution with regard to Konas’s pre-2001 debt. This debt from previous years was eventually included in the arrangement procedure in 2003.

With regard to the debt to the of PLN 914552,15, Poland submitted a decision dated 20 October 2003 on restructuring conditions signed by the Head of the local Tax Office.

Even though the implementation of the write-off by the tax office has been suspended pending the present procedure before it, the Commission finds that the advantage for the beneficiary was created at the point at which the tax decided to forgo part of its claims and thus put the aid at the disposal of the beneficiary. This moment was the entry into force of the creditors' agreement on 23 July 2004. The advantage over the beneficiary's competitors resided in the fact that the tax office had not enforced its tax claims.

As neither the Slovak authorities nor the beneficiary submitted any calculation with regard to the tax execution procedure, the Commission will examine what the tax could have obtained via this procedure.

Under that Act, further to an application from a company in difficulty, an awarding authority (e.g. the ) can issue a decision on the restructuring conditions (‘restructuring decision’).

Between 2001 and 2006 TB accrued public debts vis-à-vis ZUS, Sosnowiec local authority, the and PFRON.

Including both the and the private creditors.

The second measure granted after accession on 20 May 2004 was granted by the Head of Małopolska and consisted of an agreement for debts of PLN 280000 (EUR 71979) to be paid in instalments.