Up to 1,700 jobs at engineering group Caparo can be saved - after more than 45 potential buyers stepped forward, an MP has revealed.
But James Morris MP (Con Halesowen) also warned the Government must step in to help Midland firms affected by the group's slip in administration.
He was speaking in the House of Commons following the collapse of the engineering group, which includes 13 firms in the West Midlands and employs 1,700 people, largely in the region.
Caparo produces a number of steel products and has struggled after the price of steel fell with Chinese imports flooding the market.
But Mr Morris said the state of the steel market was only part of the explanation for the group's problems and it had been in debt since a refinancing deal in 2008.
Speaking in the House of Commons, he said many of the businesses could have a bright future.
He said: "It's clear there are a number of profitable, high-quality businesses in the Caparo group in high tech, high end engineering which will be able to find buyers.
"I understand the administrators have had about 45 different representations to acquire certain parts of the group."
But he called on the Government to set up a "Caparo in administration task group" to work with administrator PwC and protect jobs.
Some smaller firms in the supply chain were suffering cash flow difficulties, he said.
MP Adrian Bailey (Lab West Bromwich West) said there should be "transitional funding" to help West Midlands firms affected by the collapse, in a similar way to funding provided to firms affected by the collapse of Birmingham car maker MG Rover in 2005.
He said: "We need help with ensuring particularly young people have comparable jobs to sustain their skills."
Some businesses needed high-quality products which had been supplied by Caparo and could not use alternatives produced in China, he said.