THE Bell Lines shipping company and four related companies were wound up by order of the High Court yesterday and a liquidator was appointed.

The company, which operates out of Waterford and also has services between Britain and Europe, owes several million pounds. The group employs 636 people, 161 of them in the State.

Bell Lines Ltd, with registered offices at Bell House, Montague Street, Dublin, Bell Freight Transport Ltd, Bell (Mertens Terminal) Ltd, Belview Ships Agents and Stevedores Ltd, and Waterford Multiport Ltd, had been in examinership since February and Mr David Hughes, of Ernst and Young, chartered accountants, was appointed examiner.

Yesterday, Mr Justice Shanley refused to confirm the scheme of arrangement in the examinership after he was told that potential investors had withdrawn. He made the order winding up the company after hearing submissions from counsel for the company and creditors.

He appointed Mr Hughes as liquidator on the application of the companies. Mr Hughes' appointment was opposed by Waterford Harbour Commissioners and a number of British haulage operators on the grounds of a potential conflict of interest.

Mr Justice Shanley said it was a very significant and unfortunate case where the company and employees were concerned.

He said it was open to the court to make a winding up order in the absence of a petition. With regard to Mr Hughes's appointment, he had little doubt any conflict could be avoided.

. Mr Hughes applied to the High Court for additional powers yesterday afternoon.

Mr Shipsey had asked that Mr Hughes be given additional power to carry on the business of the companies so far as may be necessary for their beneficial winding up, for the power to take proceedings in other jurisdictions. Finally, he asked for the power to operate a float account up to Pounds 250,000.

Mr Justice Shanley allowed the additional powers subject to modifications.