French government to back SeaFrance rescue bid
January 3, 2012
The French government has announced that it is backing a bid from a co-operative of SeaFrance workers to take over the ailing cross-Channel operator.
The initiative, which amounts to a U-turn in the government’s stance, resulted in the Paris commercial court today postponing its verdict on the workers’ co-op bid to take into account the state’s new position.
“The government has decided to support the (co-operative) project in giving SeaFrance workers the means to take their own destiny in hand and invest in a co-operative,” said Nathalie Kosciusko-Morizet, who heads the Environment and Sustainable Development super-ministry and whose portfolio also extends to transport.
She was speaking at a press conference yesterday after a cabinet meeting convened by President Nicolas Sarkozy.
The government’s plans focus on making available redundancy payments to SeaFrance staff by shareholder SNCF, in the event of the company being wound-up.
The state could also make bonus payments. Each SeaFrance worker would be free to choose to contribute these funds to the the co-operative project.
A minimum of €40 million is said to be required to launch the project, and in government circles there is confidence in that this amount can be raised through worker contributions, together with the €12 million promised by local authorities in the Calais region.
However, rival operator P&O Ferries has been swift to condemn the efforts made by the French government to save SeaFrance.
A spokesperson said the company would file a complaint immediately with the European Commission if there was any sign that the French state was continuing to aid the company.
Commenting on the government’s announcement, a senior spokesman for SeaFrance CFDT branch, which is piloting the co-operative bid, said : “Clearly, we are satisfied with this proposition but we are waiting to see what it entails exactly. If what we are hearing is put into effect it would be mark an unbelievable turn-round in the situation.”
The co-operative bid is the only one on the table for SeaFrance following the decision last month by DFDS, in association with French shipping group LDA, via its subsidiary, LD Lines, not to make a new offer.
At a hearing last November, the commercial court ordered the liquidation of SeaFrance, but allowed the ferry operator to continue trading until 28 January.
However, SeaFrance’s ferries have been in dock since 15 November.
Courtesy of IFW
