“NO white smoke” has risen on a deal to bring the former Redcar steelworks into public hands, an inquiry has heard.

A prolonged wait to see whether three Thai banks will agree a deal on the former SSI assets and land was still stretching into the distance this morning.

The South Tees Development Corporation (STDC) wants the former steelworks land to realise its ambitions to rejuvenate 2,300 acres with a raft of cutting edge industries in a bid to create 20,000 jobs.

Hearings to force the Thai banks and SSI to hand over the land are ongoing in South Bank while a background deal continues.

Planning inspector Phillip Ware told the hearing he needed to set a programme for the three outstanding objections to the buyout.

And he asked SSI panellists what was going on.

“There is no white smoke yet,” said an SSI representative.

David Elvin QC, representing the STDC, added: “But it’s certainly a whiter shade of grey than it might have been.”

It is understood a deal is close, but the STDC leaders are still waiting on word from one bank – and all three are needed for this agreement to get over the line.

Details of this deal are not yet known.

Mr Ware said he was happy to hear a deal was getting closer but stressed Thursday morning would be a “key time” for the hearings (February 20).

The inspector added: “I can appreciate it’s extremely difficult – is there any indication of when it could be withdrawn? Is there a critical meeting before 10am tomorrow?”

The inquiry was told critical meetings had been held overnight in Thailand – and were still ongoing.

However, there were hopes a decision would be reached soon as “it was getting close to bedtime” in the Far East.

Mr Ware added: “I appreciate there are problems in dealing with parties on the other side of the globe.”

Mr Elvin said the STDC’s side had made its position to the banks clear – and it was a case of waiting to see what came out of Thailand.

If a deal falls through, objections from the banks and SSI will be heard at 10am on Thursday morning.

Exchanges in documents between representatives have been terse – with those in the Thai banks’ corner set to hit out at the STDC masterplan.

Mr Ware said he expected the hearings would run into next week if the objections stood.

“We’re going to be here pretty much up to the wire,” he added.

“We will see where we get to – obviously if there is a development this afternoon or this evening if that can be sent through urgently that would help.

“Then I can stop reading.”