Insolvent French parcels firm Sernam was today given 14 more days for the European Commission todecide whether potential investor Geodis should be forced to make a €642 million state aid
repayment if it takes over the company.The Nanterre administrational court, which has had legal control of the company sinceJanuary, announced an extension of its “observation period” until April 10 when it will decide onGeodis’ sole offer for Sernam.
Geodis has said it is ready to take over the heavily loss-making firm and retain 826 out of1,600 jobs, but is not prepared to pay the €642 million state aid repayment which the EuropeanCommission ordered earlier this month.
Geodis CEO Pierre Blayau told French news agency AFP today that the logistics subsidary ofstate-owned rail operator SNCF wants to receive “a quick and final commitment” from Brussels by theend of next week.
The European Commission announced earlier this month that Sernam would have to repay a totalof €642 million in illegal state aid. This comprised an initial sum of €41 million from 2004, whichhad not been repaid, a further €503 million in state payments in 2005 when the company was sold offfrom SNCF to private owners, and additional interest payments.
French transport unions are lobbying the government heavily to save jobs at Sernam, which hasbecome a political issue in the run-up to the presidential elections.
Sernam, 80 per cent owned by Butler Capital Partners and with revenues of €298 million in2011, was declared insolvent at the start of this year and given six months to find a buyer. It hasbeen loss-making for several years.
