Communications between the CEO of Condor Ferries and Jersey’s Economic Development Minister have revealed months of tensions that built up as the ferry tender process went on – from a plan to rebrand as ‘Bailiwick Ferries’ and a chase for financial information, to rumours that its ships were being used as film sets instead of serving Jersey and complaints that delays were harming Condor’s finances.
The spat features, at the centre, Economic Development Minister Kirsten Morel and Brittany Ferries CEO Christophe Mathieu.
The cache of emails, meeting minutes and letters was released in response to a request made under the Freedom of Information Law.
The documents show how Deputy Morel spent months asking Condor and Brittany Ferries for evidence that their finances were sustainable – and how Brittany Ferries complained that delays in the tender process were harming them.
This was happening as Jersey and Guernsey were running a joint tender process for the islands’ ferry operator for the next 15 years.
Guernsey unilaterally announced Brittany Ferries as the preferred bidder, and Jersey went with rival DFDS after conducting its own tender process.
The emails were released as the Government of Jersey is due to face more scrutiny around the tender process – with DFDS bosses speaking at today’s Chamber Lunch, and Deputy Morel and senior civil servants set to be quizzed at scrutiny panels on Wednesday and Thursday.
Financial restructuring… but no details?
In a 29 April email, Mr Mathieu outlined how Condor had restructured its debt – though details were redacted in the released emails.
He wrote: “As previously discussed, the company, the lenders and shareholders are all aligned and working towards sustainable full-term solutions that will hopefully see Condor successful in the RfP and thrive thereafter.
“I am pleased to say that the company and the lenders have commercially agreed an extension of the debt facilities to September 2024.
“This shows the continued support of the lenders for the business and provides the flexibility the company requires as it prepares for the RfP.”
But this wasn’t enough for Deputy Morel, who wanted guarantees that Condor would survive beyond September.
“The question of financial security till March 2025 is the one that we need answered and which is still outstanding,” the Minister said.
Mr Mathieu replied: “Progress is well under way and I expect to be able to revert with confirmation in the coming days being fully aware of the expectations on your side.”
This was not enough for Deputy Morel, who still didn’t see any evidence that Condor wouldn’t collapse come September.
In a visibly more frustrated email, he asked to see “actual evidence” – even citing some examples of documents that would help.
“As you know, lifeline freight services are of such critical importance to our islands that we cannot rely on just a personal assurance but require documentation to evidence Condor’s ongoing financial stability,” Deputy Morel wrote on 29 May.
“Unfortunately, despite several requests for information that is able to give us comfort as to Condor’s ongoing ability to trade beyond the summer, no such information has been forthcoming.
“As previously communicated, we need actual evidence of Condor’s ability to continue to to provide services beyond September such as letters of intent from lenders or shareholders or proof that a standstill agreement is in place until the end of the Operating Agreement.
“Not only have we asked for this information but you have previously assured us that it would be forthcoming in a short period of time.
“It is many months now and we still have not received the information needed.”
Mr Mathieu replied with no documentation but a promise that lenders had “reaffirmed their alignment and joint focus on ensuring the operational continuity of Condor”.
There was “no reason”, he said, that finances should stop Condor services from running.
“Key management (including myself) also remain committed to the continued success of Condor and its services to the islands.”
The CEO added: “As previously highlighted, Condor has sufficient liquidity to address all foreseeable expenditures of the business past the end of the existing contract expiring in March ’25.
“There is no reason why Condor’s contracted services would be interrupted on the basis of a liquidity shortfall.”
This email was sent on 29 May. The next time they met, a month later, Mr Mathieu again tried to reassure Deputy Morel that the debt restructure was being finalised and that Brittany Ferries were taking over Condor.
Meeting minutes from late June show that Deputy Morel again asked to see documentation to prove Condor’s finances were in order – and the Minister asked again by email in September and October
A rebrand and an exit strategy
The same meeting in June saw Mr Mathieu suggest that Condor could be rebranded ‘Bailiwick Ferries’.
The rebrand would be “welcomed by the public”, Deputy Morel said.
In an 8 July letter, Deputy Morel reminded Brittany Ferries that they should also have a plan for exiting the island in case the firm lost the tender.
The plan he had been shown, he said, didn’t include how the company would minimise the impact of its departure.
This was followed by more letters, with Deputy Morel asking for written proof that Brittany Ferries would keep Condor afloat and maintain crossings.
He added: “The Harbour Master previously attempted to secure a credible plan from [the previous Condor CEO] John Napton and this falls significantly short of what one might reasonably expect from a prudent operator.”
But in his response, Mr Mathieu warned that if Condor didn’t get the tender, their duty would be towards their own investors – with uninterrupted service a “preference”, not an obligation.
He wrote: “In the scenario in which our bid is unsuccessful, the Condor position would be different, primarily because the directors of Condor will have a fiduciary duty to act in a way that protects creditors’ interests.
“Notwithstanding the other important considerations (including the preference to find a solution that ensures ongoing uninterrupted service provision if at all possible) Condor’s Board decisions would necessarily be focused on complying with directors’ duties and the implications of any decisions to both secured and unsecured creditors as well as the implications for the directors’ [sic] themselves if they were to act in breach of such duties.”
Should the bid fail, lenders would want to protect their money and expect Condor to sell boats and pay them back with their cash. The Islander and Voyager would not be sold, he said.
And in October, Mr Mathieu said the contract between the islands and Condor required a three-year wind-down period.
Without this, the islands were facing “a potential cliff edge cessation of service which is already materially impacting both individual and business customers and which has put significant strain on our business model”.
“Frustration” at Government missing its own deadlines
In another letter, sent in September, then-Condor Chairman Russell Kew – who would leave the company that same month – stressed that delaying the procurement process put Condor’s finances in a difficult place.
“The Board will find it increasingly difficult to allow Condor to continue trading without assurances as to funding, to ensure its creditors and employees are not prejudiced,” he wrote.
Mr Kew warned that the company might not be able to publish its 2025 timetable in September if the tender hadn’t been decided, adding that this would impact tourism.
The more the islands waited to assign the tender, the more “challenging” it would be for Condor to continue operating at all, he said. If they didn’t get the tender, continuing to operate until March could cost Condor between £11 million and £36 million.
Deputy Morel replied that it was the company’s responsibility to manage its finances, later adding that Condor was asking for a “significant” taxpayer contribution for something the company was contracted to do.
In October, Mr Mathieu said his company was “frustrated that the islands have persistently failed to meet their own deadlines without any explanation or notice to bidders”.
“These continuing delays create an inevitable uncertainty both for our business and for our people,” he said.
A film set and a BBC comment
By the time he sent a follow-up letter on 11 October, Deputy Morel had accumulated a number of questions for Brittany Ferries – translating frustration with the lack of answers from the company.
Having not heard back about his last letter, he questioned whether Mr Mathieu had been honest when he said the company was “in communication” with him, adding: “For the moment, I would like to believe there has been no deliberate effort to mislead in that statement of 4th October 2024.”
Mr Mathieu replied that he was “surprised” by the question.
He also questioned why Brittany Ferries hadn’t spoken to Jersey Post or the freight company Woodside Logistics, and mentioned a rumour that the Commodore Goodwill was absent because it had been used as a film set.
When contacted by Express, Condor decline to specifically respond to allegations that the Goodwill had been used as a film set, but said that “ferries are sometimes used for different purposes other than point to point”.
A Condor spokesperson added: “For example the States of Jersey paid DFDS to take one of their ferries on the Dieppe-Newhaven route out of service, to carry out ramp trails during a so-called competitive tender process.”