Micheál Martin (Cork South Central, Fianna Fail)

The determination of any payments due to creditors of Irish Fertiliser Industries is a matter solely for the liquidator. The position of unsecured creditors can be determined only by the liquidator when all the assets of the company have been realised and all liabilities established. The liquidator has made considerable progress in realising the assets of the company and establishing the full extent of its liabilities.

At this stage, the main production sites at Arklow and Cork remain the principal assets yet to be realised. Contracts have been signed for the sale of both these sites and it is hoped to close the sales in the near future. The statement of affairs presented to the creditors' meeting in November 2002 estimated the amount due to unsecured creditors was €72.7 million. Of this, €34.5 million relates to shareholders' loans which the shareholders, ICI and the State have agreed in principle to subordinate in favour of the other unsecured creditors. This action on the part of the shareholders will substantially increase the rate of dividend payable in due course to the other unsecured creditors.

While I do not have an up-to-date estimate of the amounts due to unsecured creditors, I am aware the liquidator has recognised significant additional liabilities to former employees in respect of contractual entitlements to redundancy terms. In addition, the liquidator has accepted, in principle, that the trustees of the Richardsons superannuation scheme, covering the employees in Belfast, have an admissible claim on the liquidation but the quantum of that claim remains to be established.

The liquidator is engaged in discussions with the trustees of the scheme with a view to agreeing the quantum of the claim and hopes to do so soon. The liquidator hopes to be in a position to make at least an interim payment to creditors before the end of the year.

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