Court orders liquidation of SeaFrance

The Paris commercial court has ordered the liquidation of SeaFrance – but allowed the ferry operator to continue trading until 28 January 2012.
The court yesterday judged that the two takeover bids for SeaFrance – one from DFDS and LD Lines and the other from a co-operative of SeaFrance workers – were "unsatisfactory".

However, it has left the door open for new offers to be submitted before 12 December.

In its judgement, the court said the bid from DFDS and LD Lines made provision for an important number of job cuts (around half of the company’s permanent workforce) and that there was, “therefore, a risk of a serious industrial relations conflict".

It also remarked that the price offered for SeaFrance’s vessels was too low in relation to their real value, and that the takeover would also create competition issues.

As for the co-operative’s bid, presented by SeaFrance’s main staff union, the CFDT, the court said it was unable to approve a bid whose financing was “non-existent”.

A tense situation had developed at SeaFrance’s home port of Calais yesterday, when around 150 seafaring staff occupied the company’s vessels.

This was in protest to a management decision on Tuesday to cancel all the ferry operator’s services between Calais and Dover until further notice, pending the court’s decision.

The company said it had taken the step in order to guarantee the safety of passengers, staff and property.

A contingent of riot police had been drafted in to prevent the port being blocked and to maintain public order.

The court’s verdict was greeted with cheers by SeaFrance staff in Calais.

“This is a great relief, while at the same there is the feeling that we now have even more responsibilities on our shoulders,” a senior union official said.

“We must now roll up our sleeves and get to work on lobbying politicians, SNCF and the state in order to secure the financing of our bid for SeaFrance.”

The co-operative is thought to require between €25-30 million in start-up capital.

Asked by IFW whether DFDS and LD Lines would be making a new offer for SeaFrance, LD Lines MD Christophe Santoni said no decision had been taken.

In a joint statement, the two companies said their bid had "offered the best guarantee of an enduring future for SeaFrance”, and “regretted that this had not been recognised”.

Meanwhile, French Transport minister Thierry Mariani  said the judgement “did not close any doors and offered more time to save SeaFrance”.

Earlier in the week, Economy Minister François Baroin said France had decided to contest the European Commission’s decision last month to reject the recapitalisation plan for SeaFrance.

But he accepted that hopes of a successful appeal were slim.





Source;    IFW