Condor was only firm left in final stages of tender process

Rival bidder DFDS was eliminated for undisclosed legal reasons, after the third firm involved, believed to be Irish Ferries, fell away at the first stage of the process, it was revealed from Jersey yesterday.

Economic Development then reappointed Condor/Brittany Ferries only after States officials in Guernsey scored the bid more favourably than their counterparts in Jersey, who failed it, based on the company’s uncertain finances and the age of its fleet.

‘Based on the islands’ jointly agreed invitation to tender document, the DFDS bid was disqualified from the process and could not be appointed as preferred bidder,’ said Economic Development president Neil Inder.

‘Brittany Ferries’ bid passed all of the requirements in the tender and did not receive a disqualifying fail.’

Deputy Inder issued a brief statement late yesterday, a few hours after more details emerged in Jersey’s States Assembly about how the islands’ joint tender process collapsed last month.

Condor was again approached for comment but continued to remain silent.

For the first time, Jersey’s Economic Development minister Kirsten Morel put a figure on a sum of money which he has repeatedly claimed Condor requested from the States of Jersey as recently as two months ago.

‘I received notice from the chairman of the board of Condor on 11 September stating that, in the event Condor was unsuccessful securing the future operating agreement, the firm could not guarantee that it would be able to continue trading until the end of the operating agreement in March 2025,’ said Deputy Morel.

‘The letter made it clear that Condor would likely require funding from Jersey of up to £36m. in order to see out its contractual obligations.’

Deputy Inder declined to answer questions about whether Condor had made a similar request of the States of Guernsey.

He reiterated that Guernsey would have been less attracted to a standalone bid from Condor, without the involvement of Brittany Ferries, owing to the former’s financial difficulties of recent years.

But he also declined to say whether Brittany Ferries had assured Guernsey that it would guarantee Condor’s finances in the short or long term.

Deputy Morel claimed that Brittany Ferries had offered Jersey ‘performance guarantees’ on behalf of Condor but no financial guarantees.

‘Condor’s business plan included growth plans deemed unlikely to deliver as they were overly optimistic given the high level of debt in the company,’ said Deputy Morel.

‘Most importantly, their promises of future fleet investment are wholly dependent on successful refinancing in three-and-a-half years’ time. This is no guarantee of there ever being future fleet investment.

‘The main bank debt is what I would call a reasonable interest rate. But there is another element, after restructuring, which attracts some very eye-watering interest rates. When I have learned about some of those more eye-watering interest rates, what I can say is that they also confirmed to me that this is a distressed asset, because the numbers would only be asked of a distressed asset.’

He also stated that the higher interest rates ‘would not immediately hit cash flow’ because they do not need to be met by the company on a regular basis.

Deputy Morel had 24 hours earlier revealed that he received two separate requests from Condor for financial assistance late last year – the first for 80m. euros and the second for 40m. euros.