Waterford Port likely to appeal court rescue plan

WATERFORD's Port Authority is expected to strongly oppose elements of a rescue plan for Bell Lines which the examiner will he proposing at a High Court hearing in Dublin tomorrow.

The Waterford Harbour Commissioners, whose main customer is Bell lines is to press for amendments to the examiner, Mr David Hughes's scheme of arrangement, or rescue plan.

Bell Lines, which went into examinership in February, is 25 per cent owned by Irish Continental Group (ICG) and has debts of more than £20 million. The rationalisation plan would involve more than 30 job losses at Waterford Port and a rescheduled financial deal with the port authority.

Bell is said to account for more than two thirds of the harbour authority's income.

Mr John Clancy, the authority's general manager has said the scheme was seen as unfairly prejudicial to the port operators. He has indicated that if the amendments to the examiner's proposals are unsuccessful then the authority will appeal to the Supreme Court.

Under the scheme of arrangement ICG and other shareholders are to inject up to £5 million in new equity. Secured bank creditors are owed around £6 million.

Unsecured creditors are owed about £25 million and would receive only 20p-40p in the pound. Hauliers are the biggest unsecured creditors.

The restructuring plan entails up to 200 redundancies - around one third of the workforce. Most of the redundancies would occur in Britain, but up to 70 job losses would arise in Ireland.