The appointment of an examiner to the Cavan Crystal Glass company, presently in receivership, was opposed by Ulster Bank in the High Court yesterday. Mr Bill Shipsey SC, for the directors of the company, said the bank wanted to have its receiver secure as best he could the discharge of monies owed to the bank. Such a move would be to the inevitable disadvantage of those less well protected, he said.

Mr Shipsey told the court a person had lodged £100,000 with a firm of solicitors to assist the survival of the company during examinership. This was a very significant and relevant factor as to the viability of the company during an examinership.

He was moving a petition by the two directors, Mr Neil MacKay and Mr John Maher, to appoint an examiner to the company. The hearing was adjourned by Mr Justice Kelly until Monday.

Mr Shipsey told the court that before the petition was presented a sum of £170,000 had been advanced to the company by one of its directors, Mr Neil MacKay.

Since the presentation another £15,000 had been advanced to pay employees wages for two weeks. The company had in fact continued trading during that period without the help of Ulster Bank. The estimated cost of running the company was £180,000 per month.

Last week, Ulster Bank appointed a receiver but yesterday Mr Shipsey said the receiver had ceased to act once the petition to appoint an examiner was presented.

During the earlier hearing, Mr Shipsey had told the court that Cavan Crystal employed 80 people and its turnover was £2.4 million to August 1997 with an operating loss of more than £287,000.

He said the loss arose in exceptional circumstances. The company had begun the development of a new visitors' centre and manufacturing facility in Cavan town. About £1.4 million was spent to date and it would involve a further £250,000 in expenditure.

It had been envisaged the total of £1.65 million funding for the centre would be met through £650,000 from Ulster Bank and £900,000 from various grant agencies including Bord Failte. The money from Ulster Bank had been spent and there was about £270,000 still owing from grant agencies.

Yesterday, Mr Shipsey said that, while there was no dispute that there was a large Revenue liability, the company had within the last two to three months paid over a sum of £65,000 and there were negotiations to make arrangements with Revenue for the outstanding balance.

He said it was relevant that the Ulster Bank's loss of confidence in the company, on the evidence before the court, was of very recent origin. Bord Failte was supporting the petition, he noted.

There was a surplus of assets over liabilities of over £1 million which indicated all creditors could be paid in full and there would be something for members of the company. Mr Shipsey said the receiver was clearly entitled to be heard by the court but he was objecting to the receiver opposing the petition along with Ulster Bank. He was not an interested party.

Mr Eugene McLoughlin, regional head of credit for Ulster Bank, said in an affidavit that the bank was owed a total of £733,695 with a further contingent debt of £200,000. He did not believe there were any other interested parties who would be prepared to invest in the company or that the appointment of an examiner would save the company. In its short three-year history, the company had amassed debts of £350,000 to the Revenue which remained unpaid. Another £450,000 was need to complete the visitors centre, he also noted.