HOPES remained high yesterday that a last-minute international investment package to save the loss-making container shipping company, Bell Lines, may emerge. The company's examiner is expected to seek a short adjournment, possibly for two weeks, in the High Court today to allow the talks to continue. It is believed that virtually all elements of the rescue package would remain in place.

The Bell examiner, Mr David Hughes, has been engaged in intensive negotiations with new potential backers of a multi-million pound scheme to rescue the company and avoid a liquidation which would have drastic repercussions for its employees and creditors, and for the future of Waterford Port.

Waterford Harbour Commissioners, critically dependent on income from Bell's operations, will be represented in court to indicate that they are receptive to a renegotiation of terms if a rescue deal is mooted. WHC will support Mr Hughes if he seeks yet another and probably final short adjournment to complete the deal.

The examiner's last-ditch effort has followed the decision of a consortium including the Irish Continental Group (ICG) to withdraw its support for his Scheme of Arrangements to rescue Bell.

ICG, along with venture capital companies NatWest and Citicorp, had been expected to invest up to £5 million in Bell under this scheme, but backed out a week ago, citing a series of reasons.

Mr Hughes, of Ernst and Young, may now seek variations in the scheme to accommodate major new backers.

He will almost certainly need an extension of time under the court's protection - perhaps of around a fortnight - to finalise details of this salvage operation.

The reasons given for the withdrawal of ICG's consortium included the extent of opposition to the terms of the scheme. WHC had indicated that the terms proposed could render the port authority itself insolvent and would be appealed to the Supreme Court. The Department of the Marine had similarly opposed the deal.

Other factors influencing the withdrawal of the consortium included the probability of difficulties arising under the mergers, takeovers and monopolies legislation, as ICG (a 25 per cent share-holder in Bell) is itself a major operator in the freight business.

There was also concern about possible "considerable and unforeseen" expenses arising from pensions and severance schemes, costs of rectifying operational difficulties in Waterford Port, and potential added expenses from Bell's contractual commitments.

A new investor group might circumvent some of these difficulties, and could also be looked upon more-favourably by WHC and the State.

The general manager of Waterford Harbour Commissioners, Mr John Clancy, yesterday expressed hope that an eleventh-hour package could be completed. "What we're saying to the examiner is that we are prepared to negotiate on terms and that we would be very flexible in doing so," Mr Clancy said.

Some tentative progress along these lines was already believed to have been achieved yesterday, although the identity of the potential new investors was not revealed.

Although Bell's creditors, including about 100 road haulage companies, are owed in excess of £20 million, the company has continued operations at Waterford where work has continued to repair storm damage caused last year and return the terminal to 100 per cent operational capacity.

The port authority has contended that Bell's operations at Waterford were profitable and that the company's difficulties arose in sectors of its multiple operations outside Ireland.

The Belview terminal at Waterford is now back to about 65 per cent of operational capacity and improving rapidly. Mr Clancy said: "We expect at the end of the month to have a wide-span crane operational which will give us a capacity to handle all of the business again. There has been a huge amount of work done on the physical side in getting the terminal back operational.

"We are obviously anxious that this terminal would be reinstated and put back on its full operational capacity. That's what we're working towards and helping to achieve.

The port authority, which has invested some £25 million in the terminal, is dependent on Bell for more than two-thirds of its income, but has been actively seeking new port users for some time. The income is vital to enable WHC's repayments to continue on up to £12 million of European Bank loans, which are underwritten by the Government.

Liquidation of Bell, which is probably the only option if the rescue effort fails, could not only leave the Irish taxpayer facing a massive bill, but would also jeopardise the jobs of the company's 160 employees in Ireland and almost 500 others in operations elsewhere. The hauliers would also face huge losses, as unsecured creditors might receive as little as 10p in the pound.

Bell's international trading difficulties were created by a freight price war on the North Sea and by competition from the Channel Tunnel. But the Waterford port facility has been recognised as efficient and cost-effective, with 24-hour, seven-day week operations, good access and capacity, and rapid turn-around times.

It is Ireland's closest deep water multi-purpose port to mainland Europe and handles eight per cent of the country's external trade. The facility would obviously attract the interest of international shipping lines, but in Bell's straitened circumstances prospective investors will be attempting to exploit the situation by demanding exceedingly favourable terms.

Trade union representatives and Waterford politicians - including the newly elected Fianna Fail TD, Mr Martin Cullen, have called for Government intervention to ensure that all possible options are available to keep Bell trading.