At least 70 employees are likely to lose their jobs after the High Court appointed an interim examiner to Treform, a Galway firm.

Mr Justice Peter Kelly yesterday appointed chartered accountant Tom Kavanagh as examiner to Treform Ltd, with a registered office at Church Road, Moycullen, Co Galway. The company, which employs 150 people, has liabilities of €2.45 million.

The directors of the company believe it has good prospects, the judge said. However, they also believed that, if it were to survive as a going concern, the directors were proposing to reduce the workforce to some 80 people.

The judge said he was satisfied the company had a reasonable prospect of survival.

The judge was earlier told the firm - building subcontractors specialising in formwork, concrete placing and re-enforcement - had traded successfully for 22 years and was solvent until it got into difficulties with building contractors JJ Rhattigan & Co over monies allegedly due under a contract to carry out works on the Athlone Shopping Centre.

Treform claims it is due some €1.574 million relating to that project and that a claims consultant has been recently appointed.

After the company got into difficulty, an independent accountant's report was commissioned, the court heard. The company said its balance sheet has a current deficiency of assets over liabilities of €2.45 million. That amount does not include the sums allegedly due from the Athlone contract, which commenced in February 2006.

The company's main creditors include the Revenue Commissioners and Allied Irish Bank.

Subject to an agreement with the examiner, the directors and others were willing to invest significant sums in the company, the judge was also told. The company is to continue with its current contracts and is due to start more contracts in 2008, it was also stated.