Troubled France-Corsica ferry operator SNCM needs to go under court protection to shield itself from a European Commission order to repay 440 million euros in state aid, France's transport minister was quoted saying, reports Reuters.
Frederic Cuvillier told French daily La Provence that the loss-making firm, whose unions have been on strike since June 24, cannot continue its activities in its current form without risking bankruptcy and needs an ordered restructuring.
"The situation described by the company's management leads us to think that for this restructuring the company needs to go under court protection," Cuvillier was quoted as saying.
Cuvillier said he had confirmed this in a letter to the unions and that this was the only way to give a future to SNCM.
It is the first time a French government minister has raised this possibility, which the unions oppose because they fear it will lead to job losses and less favourable labour terms.
Read more of this report from Reuters.