A rescue package for the ailing Cavan Crystal Glass company was approved, subject to modifications, by the High Court yesterday. The terms of the package include a payment of £100,000 to the Revenue Commissioners, who are owed £454,000, and payment of £75,000 to Bord Failte, which is owed £362,000.

Counsel for Ulster Bank, owed more than £700,000, said it was an "extraordinary examinership" and the examiner had told the court a number of times it would not work but had been asked to "have another go".

Under the scheme, presented by the court-appointed examiner, Mr David Hughes, there will be new investment of £1.45 million so the company can trade as a going concern. Not less than £750,000 will be invested within one month of the scheme coming into operation on July 28th, of which £450,000 will be by way of new equity. The entire investment has to be made within a nine-month period.

It is proposed the main debt of £740,000 due to Ulster Bank will be reduced to £650,000. The bank will get £50,000 within 30 days and a further £100,000 due to the company from Bord Failte upon completion of a visitors' centre or within nine months.

The remaining £500,000 will be paid to the bank over a 14-year period.

However, on the application of Mr Michael Collins SC for the bank, Mr Justice McCracken agreed that, if the company failed to get the promised investment within the stipulated period, the bank could apply to the court for the reinstatement of the full debt. Mr Collins also asked that the examiner be retained to certify whether the investment funds had been paid to the company. He said under the scheme, a new management team would take over and a new board of directors be appointed.

ailte had a secured debt of £362,000. The court was told that, under the terms of the rescue package, the Revenue Commissioners will get £100,000 and Bord Failte is to be paid £75,000.

The Revenue authorities and the Bord will rank with general creditors for the remainder of the debts. The general creditors have agreed to accept 20p in the pound within a four-month period. Ms Grainne Clohessy, for the Revenue authorities, said, in addition to this scheme, it had been agreed that current debts of about £50,000 due by the company in unpaid PAYE and PRSI would be paid to the authorities before the scheme came into effect. In his report, Mr Hughes said he had been provided with evidence of available funding from banking institutions for the investors but had no evidence of the financial standing of the individuals concerned and the extent to which they might have other commitments.

The consortium of investors had only recently been formed and he was aware they had considerable negotiations in a short space of time. Further negotiations would be necessary and it was essential these were concluded as substantial monies were required immediately after July 28th.

Mr Collins, for Ulster Bank, said it was an "extraordinary examinership". A High Court judge had "thrown it out" on the basis that it had no prospect. A Supreme Court Judge had felt it "worth holding on".

"When it came back to the High Court, the examiner, on a number of occasions, said `this cannot work and discharge me' and remarkably the High Court would not let him out and said `have another go'. In fairness, the examiner was asked to prepare a scheme when he was not happy."

The most significant factor was that the investors' money did not seem to be in place yet, Mr Collins said.

Mr Collins said that, while not opposing the scheme, he required a provision which would protect his clients in the event of the investors' monies not coming into the company and he would be in a position to seek repayment of the total debt.

Mr Justice McCracken adjourned the matter to next Tuesday to allow modifications to be included in the rescue package.