The first Korean manufacturer to invest in Wales has been put into liquidation owing creditors £50m.

The National Assembly is trying to reclaim £2.5m worth of grants it paid Halla Euro Enterprises to set up in Merthyr Tydfil.

But the liquidator appointed on Wednesday has said very little will be paid back.

Halla's promise to provide 300 jobs in Merthyr was short-lived.

Redundancies

Less than a year after its official opening by the Queen, the business became a victim of the financial crisis in the Far East.

Redundancies followed and the factory finally closed last year.

Its investment in Wales totalled £36m, but it suffered losses of £50m.

The major creditors are mainly large banks and the Korean parent company - most smaller and local traders were paid.

The National Assembly is trying to reclaim the £2.5m paid in grants by the Welsh Office - a move believed to have upset the Koreans.

The business is understood, though, to have assets of just £2m.

The fork lift truck maker Lansing has since taken over the empty Halla factory.