CREDITORS OF a Dublin electrical and mechanical subcontracting company will meet again today to decide on a scheme of arrangement proposed to save the business as a going concern.

Ashcoin, which is based in Glasnevin, Co Dublin, sought High Court protection in January after it experienced cashflow problems following an arrangement with an external company which resulted in a loss of €1.62 million.

The court was told in January that the company had a turnover of €16 million in 2006 and that this was expected to rise to €18 million in 2007. It had an operating profit of about €706,000 in 2006.

The company, which employed 126 people, has debts of €7.9 million and assets worth €2.5 million, leaving it with a deficit of €5.4 million. An investor has agreed to put €1 million into the business on the condition that the scheme of arrangement, devised by the company's examiner, Declan Taite, is accepted. The investor is taking 98 per cent of a related firm, Ashcoin Fit-Out, which is not in examinership. Ashcoin Fit-Out will then make the €1 million investment in Ashcoin, under the proposals.

According to the proposed scheme, preferential creditors, which are owed €1.8 million, will receive 20 cent for every euro owed, while unsecured creditors, including trade creditors, which are owed €4.3 million, will receive 10 cent for every euro owed.

Creditors will receive additional money recouped from debtors after a bank which provided invoice discounting is paid off.

Four groups of creditors agreed to the scheme last week and a further six groups will meet today.