Several companies, mainly in Britain, have expressed interest in buying the Ispat operation in Cork to operate it as a steel plant. Ispat's Indian owners, Ispat International, closed the steel plant last month with the loss of more than 400 jobs.
The details emerged as the Tanaiste, Ms Harney, said she had met Ispat worker representatives and had told them she would seek funding from Europe to enhance their statutory redundancy entitlements.
The liquidator of the company, formerly Irish Steel, advertised the company's assets for sale in The Irish Times and the London Times last Friday. Several firms have since signalled an interest. Of these, some UK firms are interested in operating the plant to produce steel. Others may buy it for alternative uses.
The liquidator, Mr Ray Jackson of accountancy firm KPMG, said there had been "several expressions of interest" in the assets. These originated in both Britain and Ireland, although it is understood that nobody in Ireland has so far expressed interest in running the plant as a going concern.
The company has valued its land, buildings and equipment at just #3 million, although the book value was #15 million, according to the statement of affairs, an outline of the company's position drawn up by the directors, which was furnished at the creditors' meeting last month.
Mr Jackson said he was getting these assets valued and it was too early to state their worth. He cautioned there was a big difference between an expression of interest and actually buying the plant.
Mr Jackson declined to specify what alternative uses might be considered. He said the Cork facility had the capacity to allow ships of up to 3,000 tonnes to dock.
Last month's meeting heard unsecured creditors, other than Ispat itself, are owed £14 million (#18 million), and the firm has overall liabilities of almost #59 million. But of this, loans advanced by Ispat International amount to #30 million and are also unsecured. The ESB, which is owed almost #2 million, is the biggest single trade creditor, followed by Hammond Lane Metal Company (based in Dublin) which is owed #1.1 million, but there are a large number of small business creditors. It is understood that the Cork company itself is owed around #22 million and the liquidator believes these debts are collectable.
Meanwhile, Ms Harney said the Government had agreed to seek funding from the European Coal and Steel Community to enhance Ispat workers' redundancy payments.
