Ferry Operator SNCM Files for Court Protection
France-Corsica ferry operator SNCM has suspended payments to creditors and will file for court protection on Tuesday, the firm said in a statement late on Monday. Majority-owned by public transport firm Transdev, which is owned by water firm Veolia and French state bank CDC, SNCM said its management would now focus on finding a buyer for the firm. The court protection procedure will effectively mean the end of loss-making SNCM, which is unable to repay 440 million euros ($550 million) of illegal state aid as ordered by European Union competition authorities. Shipping companies could buy some of its ferries and take over part of its 1,900-strong staff to continue the key Marseille-Corsica lines, but other routes are expected to be discontinued.
Ferry Unit SNCM to Seek Court Protection Next Week
France-Corsica ferry operator SNCM will file for court protection next week, a source close to the company told Reuters on Wednesday, which will clear the way for its shareholder Veolia to restructure its transport division. Water and waste firm Veolia and the French state, which together control SNCM, have said court protection from creditors is the only way to shield the loss-making ferry operator from two separate European Union state aid repayment claims totalling 440 million euros.
Veolia Strategy At Sea Over France-Corsica Ferry Stalemate
Veolia Environnement, a global leader in water and waste management, has a little local difficulty: an ailing France-Corsica ferry operator that weighs on its shares, gives its CEO nightmares and puts the brakes on its strategic plans. At the end of 2012, new Chief Executive Antoine Frerot decided to get out of transport to focus Veolia on its higher-margin water, waste andenergy businesses, and agreed with state-owned Caisse des Depots (CDC) that it would gradually stake over Veolia's stake in their joint venture Transdev, which runs trains, buses and taxis in about 20 countries. CDC had one condition - that Veolia keep Transdev's 66 percent stake in Societe Nationale Corse Mediterranee (SNCM), a loss-making ferry operator that once had a monopoly on France-Corsica routes.
Transdev Sees Return to Profit, Ferry Unit Blocks Veolia Deal
French transport firm Transdev expects to return to profit this year, but sees no quick solution for its troubled Mediterranean ferry unit SNCM, which is blocking a reshuffle in Transdev shareholdings between Veolia and state-owned bank CDC. Transdev's 2013 net loss narrowed to 130 million euros ($179 million) from a restated 391 million loss in 2012. The loss was mainly due to 107 million euros worth of writedowns related to SNCM, which runs ferries between Corsica and mainland France. At the presentation of the firm's 2013 earnings, Transdev CEO Jean-Marc Janaillac said a partial sale of Veolia's 50 percent stake in Transdev to its joint-venture partner CDC remained conditional on the sale of Transdev's 66 percent stake in SNCM, as CDC does not want to take it over.
