IAWS, along with the venture capital group, ACT, have emerged as the frontrunners to put together a rescue package for Bell Lines, in conjunction with senior members of the shipping company's management.
Yesterday, the examiner Mr David Hughes, was given a further week by the High Court to agree a deal with the new consortium. The matter was due for hearing this morning.
It appears that Mr Ian Duffy, who formerly ran the very successful Aquaporte, and who had been trying to come up with a package, is not actively involved now.
IAWS is a publicly quoted food company whose main shareholder is the Irish Agricultural Wholesale Society which is itself owned by about 30 agricultural Coops. ACT is one of the biggest venture capital companies in the country with a fund of around £50 million, most of which has been invested by pension funds.
Mr Walter Hobbs of ACT Venture Capital confirmed last night that his company was engaged in trying to hammer out a deal. "We are part of a consortium that is actively looking at an investment in Bell Lines" he said.
It is understood that it is the Irish Agricultural Wholesale operative Society, which owns 45 per cent of IAWS, that is actively driving the proposed investment by the plc. A spokesman for IAWS said last night that the company "doesn't comment on speculation".
IAWS had previously been mentioned as a possible investor, but was reported to have lost interest.
Sources stressed that IAWS's involvement would be considered purely on a commercial basis, and for no other reason. The company is an active importer and exporter of food products.
IAWS could part fund such an investment, thought to range between £4 and £5 million, including £2 million in working capital. However, no final figure has been arrived at.
IAWS said earlier this year that it was looking for further expansion in Ireland and mainland Europe, following a 27 per cent rise in pretax profits from £4.8 million to £6.1 million in lb six months to January 31st last.
In May, it bought the British specialist horticultural fertiliser manufacturer PB Kent for £9 million sterling. It also sold a byproducts manufacturing facility in Northern Ireland, Lisburn Proteins for £8.3 million.
Bell Lines went into examinership in February. Secured creditors are owed around £6 million and unsecured creditors are owed £25 million. The largest unsecured creditors are the hauliers who are owed about £17 million.
A rescue plan involving Irish Continental Group (ICG) a 25 per cent shareholder and two venture capital firms, NatWest Ventures and CVC Capital Partners - who each own 30 per cent of Bell - collapsed dramatically earlier this month, just minutes before it was due to be considered by the High Court.
A number of reasons were cited, including a threat by Waterford Harbour Commissioners to oppose the examiner's scheme of arrangement, by appealing it to the Supreme Court. Waterford Harbour depends heavily on Bell Lines and the port authority had vowed to take legal action if amendments to the rescue plan were unsuccessful.
Meetings have been taking place with the port authority since the original investors pulled out. It is believed that the authority will come to some arrangement. Bell has a 15 year agreement with the port, dating from September 1993.
Other problems cited by the group included various matters relating to the group's Irish and British pension schemes.
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