THE 130 workers at Butler Engineering have been laid off by the receiver, Mr Ray Jackson. The plant in Portarlington, Co Laois, has debts of more than £24 million.

The receiver yesterday let the entire workforce go, but has asked staff to meet with him again tomorrow to discuss the plant's prospects.

Mr Jackson, who was reappointed as receiver to Butler after the High Court rejected moves to appoint an examiner, is understood to be talking to a number of groups who expressed interest in buying the business. While Mr Jackson was unavailable yesterday, it is believed his initial discussions may have involved up to 18 potential bidders but ii is not clear how many of these will turn into firm offers.

Mr Jackson, of accountancy group KPMG, has several options to consider in his role as receiver, and could either sell off the group's assets or sell the entire company as a going concern.

Meanwhile, workers remained apprehensive last night about the prospects for the troubled firm. A SIPTU official, Mr Billy Moylan who's union represents the majority of the workforce, said people were very anxious to know what is going to happen.

Butler Engineering is one of the biggest employers in Portarlington. ICCBank, which is owed £9.2 million, sought the appointment of a receiver to the company last month. Irish Intercontinental Bank is owed £3.67 million. A trading creditor, Preussag Stahl, is owed more than £1 million. Monies are also owed to the Revenue.