Trinity Technology, the specialist IT management service provider which made 12 employees redundant last week, is in discussions with a group of investors to raise £2 million-£3 million (€2.54 million-€3.81 million).
In a statement yesterday, Trinity said that following the redundancies announcement last week "an unforeseen difficulty" had arisen, involving a major insurance company withdrawing the credit cover of suppliers to the company.
"Over the past six days, every effort has been made by management to resolve the situation and the company is currently in discussions with a group of investors. A further statement will be issued following the conclusion of these discussions," the statement said.
Staff sources had expressed concern about payments due to them, maintaining that they had been told that they would not be paid. Trinity said all redundancy payments and outstanding monies due to the 12 employees would be paid within the next two days.
Chief executive Mr Robert Booth said the removal of the credit cover was outside Trinity's control and arose because of "misunderstandings". At the same time, general investor concern about technology markets has made it difficult for Trinity to raise the capital it needs for development and expansion. Mr Booth accepted the company had "difficulties" but he said he was confident these could be resolved.
"We have reduced our requirements and are taking a more cautious approach in current markets. It is difficult for a small privately owned company to raise funds. But we are talking to a number of interested parties and we expect to be successful," he said.
Owned by joint chief executives Mr Booth and Mr Frank Ennis and a number of smaller investors including employees, Trinity said the redundancies arose because of the technology sector slowdown in the US and were the "prudent approach to ensure the continued success of the company". Some 40 employees were retained.