The High Court yesterday appointed an examiner to Harty Holdings Ltd of Crossbeg Industrial Estate, Ballymount Road Upper, Dublin. The company is involved in the design, manufacture and installation of architectural cladding and structural glass walls for the construction industry, primarily in Britain.

Mr Bill Shipsey SC, for the company, said it has some 75 direct employees while a further 55 are employed through sub-contractors.

In an affidavit, Mr Richard O'Toole, executive chairman of Harty Holdings, said the company had experienced considerable difficulties in 1999 in securing full payment on two major British contracts. The amount at issue was some £3 million.

If an examiner was appointed, the company was satisfied this would afford the time required to conclude outstanding payment negotiations for contract work which had been completed or was to be completed. This would improve the cashflow position in the interests of creditors and would be reasonable in the circumstances.

Mr O'Toole said the petitioners believed the granting of court protection, through an examiner, would not only facilitate the restructuring of the historic debt of the company but also permit the introduction of new investment funds. Examinership represented the only available method of securing the employment of the bulk of the people concerned and protecting the interests of the company's creditors.

Mr Jason Sheehy, of accountants BDO Simpson Xavier, who was appointed interim examiner to the company on January 14th, said in a report that he recommended the company should remain under court protection to enable discussions to continue with an identified group of potential investors, to facilitate time for other potential investor groups to be identified and to enable him formulate proposals for a scheme of arrangement.

On the basis of preliminary examinations and information available, he was of the opinion that, subject to conditions, the company and at least part of its undertaking was capable of survival as a going concern.

Mr Sheehy said he had met two of the main shareholders (who were directors), the financial controller and staff, a number of key suppliers and other trade creditors. Operationally, the company had continued to trade on a normal basis. In his opinion, a management investor group was serious about the desire to put forward an investment proposal to the examiner. He also had exploratory discussions with a British party which was considering an investment.

It was also possible that other, as yet unidentified, parties might come forward during the protection period. A significant amount of goodwill towards the company had been shown by its employees and other parties, Mr Sheehy added.