The construction of Shotton CHP Ltd, which supplies power and steam to the nearby Shotton Paper Mill and the National Grid, was completed earlier this year.

This is a step towards securing the long-term future of the plant outside of TXU TXU spokesman

Workers at the site were apparently informed of the decision on Thursday.

A spokesman for the power station owner TXU Europe said contracts have been transferred into the control of PricewaterhouseCoopers

"This is a step towards securing the long-term future of the plant outside of TXU," said a spokesman for TXU Europe.

Any decision to sell the plant has not yet been taken but managers at the site have said that it has not been ruled out as an option.

He said: "That would be a decision for the administrative receivers and the lenders to make."

Financial crisis

As for the workers at Shotton, he said: "All the employees have gone with the plant into receivership.

"Their contracts of employment remain with the entity that is now in receivership."

The workers and their unions have been informed.

Martin Gale, Managing Director of Shotton Paper Mill said TXU Europe's situation will not have an adverse impact on the plant.

"In light of the recent news about TXU Europe we look forward to discussing the future supply of Shotton Paper Mill's steam and electricity with either TXU or any subsequent party," he said.

Earlier this year BBC News Online reported that TXU Europe and five subsidiaries had been placed into administration.

A UK court appointed Ernst & Young and KPMG as administrators to TXU, which owed its banks £780m, and bondholders more than £2bn.

The firm blamed its financial crisis on a fall of 25% in UK power prices since last year.