Mackie's future still uncertain after days of crisis negotiations

More than 300 employees at Mackie International could lose their jobs if the troubled engineering firm goes into receivership, as expected. The Belfast-based engineering firm was in negotiation with various parties last night and is understood to be on the brink of appointing a receiver. It is thought that a management buyout by existing executives may also be on the cards. However, the firm faces an uncertain future, following several days of crisis meetings between management and its bankers.

The company had recently produced a survival plan, which involved the takeover of an English engineering firm to secure crucial work for its foundry. It had been trying to acquire the Shield Group, which has an established customer base and a profitable track record, and in October suspended its shares following an announcement that it was trying to raise the money needed for the buyout.

But efforts by Mackie to buy Shield, based in Leicester, failed in recent weeks, and with this failure went the opportunity to increase company profits, which were £4 to £5 million sterling short of the £14 million sterling (€20.27 million) needed for the takeover deal.

With no one, including the Industrial Development Board (IDB), willing to bridge the divide, management had little option but to appoint administrative receivers to take over the running of the company, according to local sources. Although Mackie was making no official comment last night, it is generally accepted that management and the company's bankers realise that receivership is the only viable option. The delay in confirming this is thought to be due to a technical, legal or paperwork hitch.

Union leaders yesterday described their disappointment at the likely outcome and said it was the "final nail in the coffin" for the 150-year-old firm. Manufacturing Science and Finance officer Mr Jackie Nicholl said workers feel "betrayed after years of empty promises".

"The workers are absolutely shattered. There have been problems in the past at Mackie's, but the workforce supported the previous management, led by Mr Pat Dougan, and this new management under the leadership of Mr Sul Sahota, the current chief executive," he said.

The engineering firm has faced possible closure in the past. In 1997, Mackie's future was under threat when the company was forced to restate its end-of-year results, revealing a £7 million sterling loss instead of a £400,000-plus profit. Mr Sahota replaced Mr Dougan and immediately introduced a number of redundancies and other measures. But it looks as if his rescue plan, which he hoped would save one of Northern Ireland's oldest firms, will not now be possible.

Mr Nicholl said urgent questions needed to be asked about the British government's role in supporting the company. Since 1986, the IDB has paid £22.6 million sterling to the company. The engineering firm has also received research and technology grants of £3.35 million, while £1.2 million has been awarded in training and employment grants.

Politicians in the North expressed their disappointment at receivers being called into Mackie International. Sinn Fein president Mr Gerry Adams expressed disappointment at the receivership news and said that, if Mackie closed, it would be "a serious blow to the economy of west Belfast". Mr Adams said he has requested a meeting with Northern Ireland Office minister Mr Adam Ingram to discuss developments.

Mr Fred Cobain, of the Ulster Unionist Party, said Mackie's closure would further exacerbate problems in west Belfast, which suffers from large-scale unemployment. Mr Cobain appealed to the IDB and "other associated agencies" to make a concerted and effective response "to arrest the current and persistent downward spiral that west Belfast finds itself in".

Mr Joe Hendron, the SDLP Assembly member for west Belfast, said an English company had already been appointed as receivers. However, he remains hopeful that Mackie can still be saved. "I believe Mackie's will continue and survive. There is a good chance the receiver coming from England will not close Mackie's and will, in fact, let the factory continue to operate," he said.