SNCF gets EC nod for emergency cash to SeaFrance
Wednesday, 01 September 2010
SNCF has obtained approval from the European Commission to allocate emergency funding to embattled subsidiary SeaFrance, writes Stuart Todd.
It is hoped the cash will offset the risk of SeaFrance running out of money during its period in administration, which is scheduled to end on 15 September.
Vincent Launay, SeaFrance’s Deputy MD, informed the company’s works council of the “very good news” from Brussels.
But how much SNCF has stumped up to allow the cross-Channel ferry operator to remain afloat has not been disclosed.
Earlier this month, SeaFrance had all but spent the €70 million (US$89m) of financial support granted by SNCF already in 2010.
More good news has also come in the form of SeaFrance posting a positive monthly operating income in July, the first of the year and largely a result of peak-season demand generated by UK tourists.
“This is a sign of the effectiveness of the initial measures to re-organise the company,” Launay said.
However, the year-to-date figures reveal a €20 million loss since January, which is unlikely to be reversed by the end of 2010.
Meanwhile, Lloyd's Loading List understands that the sole takeover bid to be submitted for SeaFrance has been rejected by the company’s judicial administrators.
The offer had come from Being Bang, a French company based in the Paris suburbs, which reportedly planned to acquire SeaFrance’s capital and assets for the token price of €1.
This leaves the SeaFrance recovery plan, submitted by the management earlier this summer, as the only solution on the table to take the company out of administration when it is examined by a commercial court in the coming weeks, other than liquidation.
The plan makes provision for around 725 job cuts from the workforce of around 1,600.
Funding SeaFrance’s recovery and financing the redundancy programme will require a fresh injection of capital from SNCF of around €190 million, and is subject to EC approval.
Separately, SeaFrance’s freighter vessel the Nord-Pas-de-Calais has re-entered service having been withdrawn during August - traditionally a period of low market demand.
