A union official has warned that if the Drogheda company, Thermal Heat Exchangers, goes into liquidation he does not hold out any hope that it would be saved. The company employs 205 people and in July it was placed in examinership by the High Court. The examiner is Mr Rory O'Ferrall of Deloitte & Touche. SIPTU represents 177 of the workers who last week rejected a rescue package. Yesterday negotiations began between the SIPTU secretary, Mr Michael Walsh, and the company, in an effort to put together another package which would be accepted and which the examiner could present to a new investor.

It is understood that a new investor is known to Mr O'Ferrall and around £1 million would be needed to get the company back on track. The company petitioned for an examiner because it was incurring unacceptable losses. It manufactures heat exchangers for the refrigeration and air-conditioning industries.

"The appointment of the examiner was considered to be the most appropriate option to remedy the situation," said the managing director, Mr Kevin Kidney, at the time. Mr Walsh said "no decision has been taken on a second vote, we are still in negotiations and looking at the rejected package and seeing if it can be revised and that would then justify a second vote". However, he said "radical changes" would be needed. It is understood that nearly every aspect of the package was objected to by sections of the workforce, the majority of whom are members of SIPTU.

The package involved changing work practices and working hours.

A decision on whether a second ballot will be held is expected to be taken today or tomorrow. Mr O'Ferrall is to return to the High Court on September 11th.