Losses totalling almost £2.4 million brought about the downfall of Ireland's bid to stage the World Equestrian Games. The figures were revealed at a creditors meeting in Dublin yesterday when the organising company, WEG Ireland Ltd, and an associate company, Blissland, were officially put into liquidation.

Blissland had been set up as a separate company, at the request of former WEG title sponsors Nissan Ireland, to run the Nissan international equestrian festival at Punchestown this year. Its financial dealings are closely linked with WEG Ireland Ltd.

WEG Ireland's chief creditor, with an outstanding bill listed as £1.5 million, is the International Equestrian Federation (FEI), equestrian sport's governing body. FEI granted Ireland the rights to the 1998 World Equestrian Games in March 1994, but insisted on a £1.5 million guarantee, which would fall forfeit if Ireland reneged on the deal to host the Games.

This performance bond has now been called in by FEI. Former WEG Ireland personnel say that this was underwritten by Bord Failte and should not be included in losses accruing to WEG Ireland Ltd.

Nissan Ireland, which had come in with a £2 million rescue bid for the World Games when the Government refused further funding for the venture last summer, is seeking the return of £450,000. This is the amount paid out by Nissan to WEG Ireland before the car company pulled out as title sponsor of the Games in April of this year.

The decision to liquidate WEG Ireland Ltd was made at a 90minute meeting in the Green Isle Hotel in Clondalkin yesterday, when over 30 creditors approved the appointment of Paddy McSweeney of Dublin accountants BDO Simpson Xavier as liquidator. At a separate meeting held immediately afterwards, Mr McSweeney was also appointed as liquidator for Blissland. It is thought that Mr McSweeney may well seek payment of £250,000 pledged by the Government last summer. Enda Kenny, then Minister for Tourism and Trade, had capped Government spending on the WEG project at £750,000 but, following the announcement of Nissan's cash injection, agreed a further grant of £500,000.

WEG Ireland was given half of this figure last year, but the remaining £250,000 was never paid.

WEG Ireland's assets were officially declared at £21,000 at yesterday's meeting, but a source close to WEG Ireland stated that as much as 70p in the £1 may be paid out to creditors.