The liquidator of European Forestry Growers, the forestry company which owes thousands of pounds to hundreds of growers, has failed in his bid to find a purchaser for the company's contract with the growers.

On May 19th the directors of the Co Westmeath Christmas tree business had a liquidator, Mr Aidan O'Connell of Deloitte & Touche, appointed to the company. His aim was to redeem money owed by the company to creditors.

But yesterday, Mr O'Connell said prospective purchasers had expressed concern about a number of issues, which meant they were not prepared to purchase the outstanding contract between the company and the growers.

Purchasers were worried about the variety of tree being grown (Norway spruce), the large number of plantations and "future compliance with the terms of the contracts," said Mr O'Connell.

He is now going to write to all known growers advising them that contracts are "being disclaimed and are at an end". There now seems little hope that the growers will receive any money back.

European Forestry Growers claims to have no assets apart from some office equipment, which it estimates would realise around £500 in a liquidation sale. The company puts an estimated value of £250,000 on its contracts with hundreds of growers and it had incurred trade debts of more than £48,000.

The directors of the company have so far insisted that the growers are not technically entitled to be recognised as creditors. It is unclear if any of the growers can take a legal action against the company.

When European Forestry Growers initially began trading in 1990, it entered into contracts with hundreds of farmers and land owners in the Republic to plant its Christmas trees.

The company undertook to sell the trees to farmers usually for around 50p each, and to supply them with fertiliser and weed killer, to see the trees to maturity.