Creditors of a crisis-torn North-East steelworks will tomorrow listen to administrators spell out proposals to try to save the 140-year-old plant.

One of the main survival packages has been prepared by redundant workers at Weardale Steel, in Wolsingham, County Durham, led by former managing director Bill Cooper.

"We are now in the final stage of completing our business plan and we will be putting this to the administrators very shortly," Mr Cooper told the Northern Echo last night.

"We are very optimistic that this will appeal to the creditors and that we will be able to go ahead with our plans to ensure a sound future for the steelworks and its workers in Weardale."

It's reported that Bonds foundry, at nearby Tow Law, which has taken on around 30 workers to complete outstanding contracts at Wolsingham on behalf of the administrators, have also shown a strong interest in the works.

But Bonds management have so far refused to comment on these reports.

The creditors meeting, called by Sheffield-based administrators Poppleton and Abbleby, will be held at a hotel at Scotch Corner, County Durham, tomorrow morning.

Nearly 80 workers, laid off when Weardale Steel went into administration three months ago following a disastrous takeover by Midlands-based Eastwood Industries, are among the main creditors of the company.

None of them have received any severance or holiday pay and they have had to rely on State benefits. The yearly wage bill at Weardale Steel was more than £2million.

Another leading creditor is the Inland Revenue, followed by North-East firms who supplied the Wolsingham company.

One of these - a County Durham pattern maker - is reported to be owed more than £75,000.

Kenny Lally, former Amicus shop steward at Weardale Steel and one of the ex-steelmen in the working group led by Bill Cooper, said: "It's important that the administrators give the right kind of message to the creditors about our plans to run the company.

"We have the skills and the will to make this a sucessful business once again."

Mr Cooper said they had beewithir business plan by the Birmingham-based Unity Bank, which is run by several trade unions and the Co-operative movement.

He said: "Along with us, they have shown they have a great desire to save a company which has established itself as a word leader in manufacturing heavy steel castings."