English Channel ferry operator SeaFrance is looking for buyers again in an effort to find fresh funding for its latest recovery effort.
The company, which lost EUR15 million (US$18.4 million) in the first four months of this year after a net loss of EUR52 million (US$64 million) last year, has admitted that it is no longer sure of receiving all the financial support it needs from its owner, French national rail company, SNCF.
SNCF, which has been assisting in the company's operating shortfall on a monthly basis and had originally promised it a EUR170 million (US$209 million) recapitalisation plan, now says that it will not be able to recapitalise the company unless its recovery plan has the full support of the company's personnel, which has shown reluctance to accept previous plans. In addition, any financial support offers will need to be approved by the European Union competition authorities.
A SeaFrance spokesperson said it was evident that there was some uncertainty about SNCF's ability to recapitalise the company and meet its other financing needs.
"It is clear that we must envisage other possibilities, other means of obtaining financing," she said.
She said that the company could not officially approach potential buyers before June 23 when the Paris Commerce Court is due to rule on its application to qualify for a court-supervised recovery procedure instead of the company safeguard mechanism from which it is currently benefiting.
Two potential candidates who spring to mind, however, are French-English Channel operators Brittany Ferries and LD Lines, a ferry subsidiary of the Louis Dreyfus Armateurs group.
Louis Dreyfus made a bid for SeaFrance in February last year shortly after the latter's financial difficulties were made public. It withdrew it a few weeks later, however, complaining of union opposition to its offer and "ambiguity" on the part of SNCF.
Brittany Ferries also presented a bid after being encouraged to do so by the French government. Embroiled in its battle with the unions over a 500-plus redundancy plan, however, SeaFrance never officially responded.
Meanwhile, SeaFrance is proceeding with the implementation of the 725 redundancies that form part of its latest recovery plan. It presented the plan to the Commerce Court on June 16 and is now to open discussions with the unions on redundancy terms.
– Andrew Spurrier
