Administrators are seeking a buyer for a Cheshire paper business after failed efforts to keep the firm solvent.

Bridgewater Paper Company in Ellesmere Port, owned by Canadian firm AbitibiBowater, continues to operate while a buyer is found. It sells recycled paper produced in both the UK and Canada, employs 300 workers and is said to have an annual production capacity of 220,000 tonnes.

"We are continuing to trade the business as we explore all options, which include looking for a buyer for the business as a going concern," confirmed joint administrator Tom Jack from Ernst and Young.

"We are grateful for the support of all customers, employees and suppliers as we continue to satisfy customer demands."

The paper business for sale is believed to have traded at a loss for some time, leading its directors to conclude it could no longer meet its debts as they fell due.

In April last year, AbitibiBowter filed for creditor protection after US lenders turned down a proposed debt restructuring plan, announcing that it and its US and Canadian subsidiaries had filed voluntary petitions under US and Canadian bankruptcy codes.

The "merger of equals" of Abitibi-Consolidated and Bowater was completed in November 2007.

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