ADMINISTRATORS appointed to a paper-making firm have said a number of parties worldwide have "expressed an interest in the business".

A total of 325 employees lost their jobs when Tullis Russell Papermakers, based at Markinch, Fife, called in administrators last month, with a further 149 positions at risk.

Blair Nimmo and Tony Friar of KPMG were appointed joint administrators of the company on April 27 and the Scottish Government set up a taskforce backed by £6 million investment.

They said that although interest had been expressed in the business, there remained a "number of challenges" to overcome.

The administrators said they have re-established contact with parties including other paper manufacturers and paper merchants across the world who had earlier declined the opportunity to buy the business. They said they have also marketed it for sale to the wider investor community.

A deadline has now been set for bids after they received a number of "notes of interest from parties worldwide, both for the business and assets as a going concern and for individual assets or brand names".

KPMG said an information memorandum has now been issued to a small number of parties who have signed a confidentiality agreement.

Mr Nimmo said: "We have been contacted by a number of parties that have expressed an interest in the business, which reflects the company's long history, strong reputation for high quality products and the high regard in which it was held by its customers and within the industry.

"Nevertheless, there remain a number of challenges to overcome should a purchaser wish to acquire the business and assets and recommence paper manufacturing.

"We have set an initial closing date for indicative offers for the business and assets for 12pm on Monday May 18, after which we will be better able to assess the level of interest. In the meantime, we would like to thank the company's staff for their ongoing assistance."

Meanwhile, a support event for those facing redundancy attracted 368 people yesterday.

The Partnership Action for Continuing Employment (PACE) event, held in Balbirnie House in Glenrothes, brought together 45 exhibitors including 25 employers.

PACE is a Scottish Government initiative led by Skills Development Scotland (SDS) in conjunction with a number of key PACE Partners, for responding to redundancy situations.

Deputy First Minister John Swinney, co-chairman of the Fife Taskforce, said it was a positive sign.

"In only one week 45 exhibitors, including 25 employers, came together to do what they can during this challenging time for the community, and I am encouraged that 368 individuals took advantage of today's event.

"I want to be very clear - this government is committed to doing all it can to support the company, the workforce and the local community at this challenging time, and we are working closely with Fife Council in doing so. We will leave no stone unturned and that is why we are focusing all efforts on identifying a buyer, securing a future for the Glenrothes site, and supporting employees."

David Ross, leader of Fife Council, added: "As well as trying to find a buyer for the company finding employment for the workforce that has been made redundant is a top priority. I'm delighted this event has been so well attended and - critically - supported by local agencies and employers; I hope it will prove useful for many of the workforce."