Government ‘would aid rescue plan if possible’

FINANCE Minister Brian Lenihan has indicated the Government would get involved in a rescue attempt for Waterford Wedgwood — if this was possible.

Yesterday he said it would join any court proceedings designed to work out a recovery plan.

However for this to happen legally the company would have to be taken out of receivership and placed at the mercy of a High Court appointed examiner.

Mr Lenihan told RTÉ if there were court proceedings it would row in.

“The Government is looking at the position and will ask for involvement in any court proceedings, if we can,” he said.

Yesterday the Government held talks to consider the limited options available.

However, moving a stricken company out of receivership would be unorthodox.

In most cases a receiver only looks for a salvage buyer while an examiner investigates ways of keeping the business operational while the company enjoys court protection.

If Waterford Wedgwood remains in receivership rescue options are reliant on the unlikely emergence of new investors.

The Government ruled out using taxpayers’ money to nationalise the company.

Meanwhile, union officials representing workers at Waterford Crystal held lengthy talks with the company’s receiver yesterday as fears deepened that not only would 800 jobs be lost, but also pension entitlements.

The company’s future remains bleak despite reports that three separate investors from the US expressed an interest in taking over at least part of the world-famous operation.

As workers turned up for their regular shifts yesterday. Shop stewards from the UNITE union met for several hours before heading into talks with members of the team assembled by receiver David Carson of accountancy firm Deloitte.

They urged that every effort be made to sell the operation as a going concern in order to save as any jobs as possible. It is understood that preliminary talks have taken place with several US based investors.

Much of the crystal production is already taking place in Eastern Europe and before the crisis, company management indicated it wanted to reduce manufacturing to a minimum in Waterford.

A complication for potential buyers is that the crystal plant is only part of the Waterford Wedgwood parent company which went into receivership, buyers may prefer to take on only Waterford or only the Wedgwood china operations.

An added concern for employees raised its head yesterday when it emerged pensions may be at risk. The company’s pension scheme has a €100 million hole.

However, parties involved in talks about the company’s future were tight-lipped last night. A spokesman for receiver David Carson said the process of reviewing and assessing the company’s finances was ongoing.

“His focus is on continuing to trade the business while seeking its sale as a going concern.”