European companies interested in Ispat

Fifteen companies have expressed interest in buying the Irish Ispat steel plant in Cork, following the closure of the operation in June with the loss of more than 400 jobs. All are European companies, apart from two which are based in the Middle East. Some British groups are thought to have expressed an interest in taking over the plant.

Liquidator Mr Ray Jackson of KPMG hesitated yesterday to express optimism about the sale process, but said that the next four weeks were likely to see further progress. Mr Jackson said he expected any sale to be complete within 12 months.

It is unclear as yet whether any of the potential buyers intends to continue operating the Cork plant as a steel facility, although sale advertisements suggest no other use. Without specifying alternative activities, Mr Jackson has said the site could offer other possibilities.

The expressions of interest come as Ispat International, Irish Ispat's parent, reports a net loss of $69 million for the second quarter, following a $17 million charge for the closure of the Irish plant.

Mr Jackson said yesterday that good progress was being made on calling in debts owed to Irish Ispat upon its closure. These debts are understood to amount to around €22 million, while it was estimated in June that unsecured Ispat creditors were owed €18 million.

Mr Jackson said that, until an ongoing valuation of the plant's fixed assets was completed, it was impossible to predict to what extent these creditors could be accommodated.

In an outline of the company's position dating from June, Ispat itself valued its land, buildings and equipment at €3 million, although the book value was €15 million.