The future of cross-Channel ferry operator SeaFrance is back in the balance following reports that the French unions have rejected proposals put forward by mediator Daniel Cholley.

Talks had been taking place between management and the union CFDT to resolve the serious financial situation which has been threatening the future of the company.

The mediator's proposal recommended 482 redundancies, as opposed to the company's original suggestion of 650. Management approved the proposal and the mediator had set a deadline of yesterday for the union to agree.

But they refused to sign, and SeaFrance bosses are now considering their next move, which could involve an approach to the French commercial court. The fate of the company could then be in the court's hands.

It is understood that union members will be balloted next week on whether they want to support the proposal.