Ulster Bank has appointed a receiver to Cavan Crystal Glass Ltd, the High Court was told yesterday. The court was told of the appointment in the course of an application for directions relating to the advertisement of a petition for the appointment of an examiner. The petition is being made by two directors of the company, Mr Neil MacKay and Mr John Maher, who said it was their view the appointment of an examiner would facilitate the survival of the company as a going concern.

The court was told the petition is returnable for Monday, March 9th. Mr Justice McCracken directed that it be advertised next week in two national newspapers and that notice be served on the receiver, the Revenue Commissioners, Ulster Bank and Bank of Ireland.

The directions were sought by Mr Bill Shipsey SC, for Mr MacKay and Mr Maher.

The company employs 80 people. Mr Shipsey said its turnover in its first year was £1.87 million and it made a profit of £274,000. The turnover increased to about £2.4 million in the year to August 1997, with an operating loss of more than £287,000.

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

It had been envisaged that the total £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 the Ulster Bank had been spent and there was some £270,000 still owing from grant agencies.

In court yesterday, Mr Shipsey said Ulster Bank is the principal banker of the company. It had loaned funds towards the development of the visitors' centre and had lost confidence and appointed a receiver on Thursday, he said.