BOSSES at French ferry firm SeaFrance have moved to quash fears the company could be on the brink of financial crisis as the recession deepens.

Reports in the French media have suggested the Dover-Calais operator, which employs around 190 people in the UK, could be the latest high-profile shipping firm to be hit by the economic crisis, just weeks after rivals SpeedFerries went bust.

Bertrand Pericaud, a senior Communist Party politician in Calais, has suggested the company is having difficulty meeting payments and could be facing potential liquidation.

Speculation has mounted because the company lost around 20 million euros in 2007 and is looking at an even higher deficit this year.

The business has been rocked by a highly disruptive officers strike, rising oil prices and problems bringing its latest ship Moliere into service. All these difficulties have put strain on finances.

Reports across the Channel have speculated about a possible restructuring plan which could see redundancies made, while discussions about the firm's budget for 2009, which has yet to be agreed, remain ongoing.

The managing director of SeaFrance in the UK, Robin Wilkins, has told the Express the business is operating in a tough market and has warned things could get harder next year, but says he does not take the speculation from the Communist Party in France seriously.

He said: "The background is that we are now in a recession and don't know where it's going. We have been affected by the price of fuel and the value of Sterling.

"We envisage freight and tourist markets being weak next year, and freight falling quite rapidly. In addition, the resumption of Eurotunnel in the first quarter of next year and the start of LD Lines makes the market very difficult. Because of all that we are working on a budget and it is true to say that no conclusion has been reached.

"We do not need to take the speculation of the head of the Communists in Calais very seriously. We are not receiving state aid and have never been subsidised by the state, we are a subsidiary of SNCF."

Mr Wilkins' views on the state of the business and the wider problems facing all operators on the short-sea route are well known. During 2008 he made a raft of candid admissions about his concerns.

Other companies have also had to make changes to operations to cope with the worsening economic climate. Both P&O Ferries and Norfolkline have had to lengthen journey times in a bid to save on fuel costs, while P&O has also imposed a recruitment freeze.

Despite the current challenges there are signs the big ferry firms see things turning round in the future. SeaFrance has upgraded its fleet with the introduction of Moliere earlier this year and P&O has placed a multi-million pound order for two new ferries.