TheThe management of the SNCM ferry company that links Corsica with the French mainland told employees Monday it was filing for bankruptcy, a move which could help it escape an EU aid ruling, reports GlobalPost.
The SNCM has been ordered by the European Commission to pay back more than 400 million euros ($500 million) in what Brussels has judged to be illegal aid from the French state.
Employee representatives on the company's works council said the management announced at a meeting on Monday it intends to put the company in receivership, although the company declined to make a formal announcement.
French public transport operator Transdev and utilities operator Veolia, the two private investors which hold a majority stake in SNCM, have been pushing to place the company in receivership in a bid to free the ferry operator of the obligation to repay the funds and thus path the way for a new buyer.
