The fate of the Tipperary Heritage Centre will be clearer on Thursday when the High Court decides whether to wind up a company which runs the facility or to appoint an examiner to it.
The High Court court was yesterday told the centre, based in Tipperary town and completed only two years ago at a cost of €5 million, had serious financial problems and was unable to pay its debts as they fall due.
It had secured State grants of more than €2 million.
A construction company, Conclan, has presented a petition for the winding-up of the company.
However, South Tipperary County Council is moving instead for the appointment of an examiner. It said it believed Tipperary Excel Heritage Co Ltd, which runs the centre, had a viable future provided certain conditions were met.
Those conditions included the successful completion of additional fundraising and the restructuring/writing down of its indebtedness, and the acceptance of an appropriate scheme of arrangement by creditors and members of the company.
On the application of Mr Paul Binchy, for the council, Ms Justice Finlay Geoghegan yesterday gave leave for the petition for the appointment of the examiner to be heard by the court on Thursday, and adjourned the winding-up petition to then.
The council was said to be a contingent creditor of the heritage company, having gone guarantor for its bank liabilities up to €2.98 million.
The centre comprises a 362-seater theatre, two cinemas, an art gallery, gift shop, restaurant, tourist office, interpretative centre, family history service and conference facilities.
Prior to the commencement of construction, the company's outgoings were funded by draws, donations, grants from the Department of Arts, Heritage, Gaeltacht and the Islands and a credit union loan.
In December 1999, Bord Fáilte indicated that it was only prepared to grand-aid construction provided building contracts were in place within one week.
The company immediately contacted contractors. A number of tenders were received. Ultimately, because it was the lowest priced tender, the contract was awarded to Conclan Ltd, trading as Clancy Construction.