Brittany Ferries "very comfortable" with debt structure for Condor

Monday 02 December 2024

The CEO of Condor's parent company has defended the operator's financial position as it looks to secure the contract for Jersey's freight and passenger ferry services, along with Guernsey's.

Christophe Mathieu said that Brittany Ferries had "very little debt" and had also negotiated a restructuring of Condor's finances that meant the operator could meet Jersey's latest tender requirements.

His comments come as a decision on the Jersey-only tender is expected imminently, with Danish shipping giant DFDS also in the running to secure the 15-year contract there. 

Pictured: DFDS has also thrown its hat in the ring for the Jersey-only ferry tender.

Jersey's Ministers dropped out of the initial pan-island tender process after Guernsey appointed Brittany Ferries to run our ferry services for the next decade and a half.

Though Economic Development Minister Kirsten Morel has stressed the Jersey contract could go to either operator, he has also acknowledged “significant concerns” over Condor's finances.

"We are very comfortable with our debt structure"

But speaking to Express, Mr Mathieu pointed out that the tender process contained "clear" financial criteria and that the operator had been able to "tick the box".

"We restructured the debt, we almost halved the debt of Condor. The bankers didn't give us the money but they agreed to convert the debt into equity and therefore we know that we were qualifying," he continued.

"Whether some people think that it's not quite sufficient, that's not what was asked in the RFP [Request for Proposal] – that's a qualitative judgement."

Pictured: Brittany Ferries CEO Christophe Mathieu said the operator was "very comfortable with our debt structure – including Condor".

In addition to the restructuring of the debt, which Mr Mathieu explained was "subject to getting this contract", he also highlighted that Brittany Ferries was now the "mother company" of Condor.

"Therefore Brittany Ferries is committed to support its subsidiaries, like any other business," he added.

"Brittany Ferries has very little debt"

He also defended Brittany Ferries' financial position, having paid-off assistance it received from the French government during the pandemic.

"We've just repaid, over the last few weeks, our Covid debt to both Brittany and Normandy," he said.

"Besides that, Brittany Ferries has very little debt."

Pictured: Mr Mathieu said Brittany Ferries was "committed" to its subsidiaries including incumbent operator Condor. 

Mr Mathieu continued: "Going forward, we are very comfortable with our debt structure – including Condor." 

Referring to the current tender process, he said: "We believe we've got the right offer, we've got the fleet, we've got the Guernsey contract, we've got the financial structure, but also it's obvious to everybody in both islands that one service is better than two services."

During the interview, Mr Mathieu also spoke out for the first time on the social media blunder that led the civil servant leading the tender process on the Jersey side, Economy Chief Officer Richard Corrigan, to step aside.

"He didn't vote for Brittany Ferries, that's all I can say"

Mr Corrigan voted for DFDS in an online Facebook poll, which he said was a mistake and that he had simply wanted to see the results. Deputy Morel recently said that his stepping aside was the "right" thing to do, revealing that Mr Corrigan was signed off from work.

When asked about his reaction to the situation by Express, Mr Mathieu responded: "He didn't vote for Brittany Ferries, that's all I can say. So it might be a coincidence, but for a lot of people it was the wrong thing to do to vote anyhow."

However, Mr Mathieu acknowledged that Mr Corrigan had stepped away from the selection process and was "not involved in any way shape or form" with the new Jersey-only tender.