THE High Court is expected to approve a deal for the takeover of troubled electronics firm Cornel Electronics next Monday. The [deal will involve Lake Holdings buying the company for a total investment of close to £1 million.
Cornel Electronics is regarded as one of the country's leading indigenous electronics firms and makes modems in its Tallaght factory, where it employs 85 people.
The majority of the jobs are expected to be saved under the deal.
The company asked for an examiner to be appointed last June. It had run into difficulties because of cost overruns and other problems associated with the development of a new product, its acting chief executive, Mr Brian O'Sullivan said at the time.
When the examiner, Mr Paul Wyse, of Oliver Freaney & Co was appointed the company's debts were £1.6 million.
The Revenue Commissioners are owed £600,000. Preferential creditors will be paid in full.
Ordinary creditors will get between 26p and 28p in the pound. One unsecured creditor was owed £320,000, but supported the examiner's appointment.
At the time of Mr Wyse's appointment Cornel was losing £50,000 a month.
Cornel was set up in 1981. It originally manufactured modems under licence for other manufacturers.
The company then developed its own high-speed data pump, a core piece of technology in a modem which it sold other manufacturers. The company's annual turnover was around £7 million.
When seeking the examiner's appointment, the company said one of the reasons for its losses was the failure of a very significant project which had turned out to be a financial disaster.
Lake Holdings company, Lake Communications, is an indigenous telecommunications company. It manufactures PBX telephone switches and has also developed ISDN business.
The company has grown substantially since a management buyout in 1991 and employs around 65 people. Its turnover this year is expected to be £20 million.
Set up by Mr Harry Lynam, it was owned at one stage by Swiss manufacturer Landi & Gyr before being bought back by the management team.
Industry sources said Cornel would be a good fit for Lake and would give it more scale
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