France-Corsica ferry operator SNCM has suspended payments to creditors and will file for court protection on Tuesday, the firm said in a statement late on Monday.

France-Corsica ferry operator SNCM will file for court protection next week, a source close to the company told Reuters on Wednesday, which will clear the way for its shareholder Veolia to restructure its transport division.

Cash-strapped ferry operator SNCM looks set to seek legal protection from its creditors after Europe's highest court ruled on Thursday it must pay back 220 million euros ($289 million) of French state aid.

French Prime Minister Manuel Valls said on Wednesday he would take steps "within hours" to end blockades of ports in Marseille and Corsica by workers of the SNCM ferry operator, who are striking over the firm's restructuring plans.

Veolia Environnement, a global leader in water and waste management, has a little local difficulty: an ailing France-Corsica ferry operator that weighs on its shares, gives its CEO nightmares and puts the brakes on its strategic plans.

Mexican ferry company Baja Ferries said on Tuesday it hopes to close a deal to buy troubled French ferry operator SNCM before November or December.

By Geert De Clercq PARIS, May 26 (Reuters) – U.S.-Mexico ferry operator Baja Ferries is in talks with French transport firm Transdev about buying its 66 percent stake in loss-making...

Loss-making France-Corsica ferry operator SNCM, which is partly owned by French water and waste group Veolia Environnement, plans to order four new ships, an SNCM spokesman said on Friday.