News - 26 July 2010
SeaFrance unions rubber-stamp rescue plan
Staff unions at SeaFrance have agreed a new rescue plan for the embattled cross-Channel ferry operator. The plan will require a fresh injection of capital of €190 million (US$245m) from sole shareholder SNCF to fund the recovery and finance a redundancy programme.
On 30 June, a Paris commercial court placed SeaFrance into administration until 15 September 2010. A SeaFrance official said the unions’ agreement was “indispensable”, and added: “It demonstrates that management and staff are pulling in the same direction, in an effort to save SeaFrance.” A deadline of 31 July had been set for the signature of the agreement, coinciding with the expiry of SNCF’s latest package of cash support to the ailing subsidiary. Earlier this month, SeaFrance confirmed that its parent company was willing to continue its financial backing through the administration period, provided there was unanimous agreement by staff unions on the new rescue plan. With the threat of insolvency at the end of month seemingly lifted, the next stage in the judicial process is the court hearing on 15 September, at which SeaFrance’s management will present the new rescue plan. This makes provision for around 725 job cuts from a total workforce of around 1,600, and compares with the 482 redundancies under the first rescue plan, which was rendered void when the company was granted court protection. As a result of being placed into administration, SeaFrance could now be the target of takeover bids – either for part or all of the business – which would be in competition with the rescue plan for the court’s approval. It is not known whether SeaFrance’s administrator has yet received any bids for the company. The SeaFrance official said the proposed €190 million package of financial support from SNCF would have to be agreed by the European Commission and confirmed that work had begun on filing the submission. Source: IFW
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