The receivers to Superquinn have dismissed IBEC's €100 million estimate of outstanding debts to trade creditors as 'grossly over-stated'.
Kieran Wallace and Eamonn Richardson of KPMG say that at this stage, they estimate that the figure is approximately €25m.
They say that while they appreciate that this is a difficult time for suppliers, it is absolutely the best outcome for them that a deal happened in this manner.
They point out that the deal involves an Irish company and will secure their future trading.
They say that they have already communicated with over 60% of their suppliers - and that all suppliers will continue to support Superquinn and supply the business from today.
The receivers thanked suppliers, employees and customers for their commitment and loyalty, noting that the company experienced an extremely good day's trading with sales far in excess of expectations.
They said Musgrave was looking forward to and committed to working with Superquinn suppliers in the future, adding that this would bring longer term certainty for suppliers.
Superquinn which went into receivership yesterday and has been sold to the Musgrave retail group.
While the price has not been disclosed, the deal will save the jobs of 2,800 employees, who will transfer to the new company on their existing employment terms.
The employers body IBEC had estimated that food and drink manufacturers and suppliers were owed up to €100m.
The receivers have confirmed that they will pay for any stock which is currently in the stores and have not yet been sold.
They have also undertaken to try to fast-track outstanding payments, and will guarantee payment for any goods ordered from the time of yesterday's receivership until the receivership ends.
However, they will not be reimbursing creditors for goods which had been delivered to Superquinn and sold to customers, but for which the suppliers had not yet been paid.
Fears for the future of creditors and suppliers were voiced by employer groups IBEC and ISME, the Irish Farmers Association and Irish Creamery Milk Suppliers Association.
A consortium of banks including Bank of Ireland, AIB and National Irish Bank appointed the receivers.
The banks are owed around €400m with the problematic debts relating to property.
Musgrave is taking on all Superquinn branded stores. The Dundalk outlet - known as Carroll Village Supermarket - will be sold independently.
The deal is subject to regulatory approval from the Competition Authority.
Musgrave, which already operates a range of retail brands including SuperValu, Centra and Daybreak in Ireland, Budgens and Londis in the UK and Dialprix in Spain, said it has extensive brand building experience.
It said that Superquinn had been 'challenged by the scale of its debt burden and the difficult trading environment'.
'This purchase secures the jobs of 2,800 people and on completion of the sale process, Musgrave intends to invest in the stores and work with the Superquinn employees to develop the future of the business,' a statement from Musgrave said.
'Purchasing Superquinn, when approved, supports our growth agenda and will sustain our competitiveness. We are looking forward to working with the Superquinn team to develop the future of the business,' commented Musgrave's chief executive Chris Martin.
Musgrave's Supervalu brand has just under 24% of the Irish grocery market.
Adding Superquinn's 6.4% share would take it to around 30% and push it ahead of Tesco as the biggest supermarket player in the country.
Between them, Tesco, Musgrave and Dunnes would control 70% of the grocery market.
The Mandate trade union, which represents retail staff, has given the buyout a cautious welcome.
However, the Irish Farmers' Association said the purchase of a medium-size chain like Superquinn by one of the bigger players in the Irish market, meant just three companies now dominate the sector here.
The president of the IFA, John Bryan, expressed concern that producers would be squeezed for lower prices as a result.
ISME demanded that the Government intervene to ensure that small suppliers to Superquinn are paid for goods supplied prior to the banks putting in a receiver.
'It is outrageous that this type of legalised corporate robbery can take place under the noses of the administration, at a time when small and medium suppliers are struggling to survive,' said ISME chief executive Mark Fielding.
Food and Drink Industry Ireland, the IBEC group that represents the food industry, said it was seeking immediate clarification from the receiver as to whether trade creditors would be paid in full for goods already provided.
FDII Director Paul Kelly said: 'Failure to pay these companies what they are rightly due will have a disastrous effect on the supply chain and affect the immediate viability of many food companies, placing thousands of jobs at risk.'
