An interim examiner has been appointed by the High Court to Smart Telecom.
The court heard the company owes its creditors around €70m in loans and interest.
Smart Telecom is controlled by Cavan-born businessman and Kingspan shareholder Brendan Murtagh.
The court heard that Mr Murtagh had put a large amount of his personal finances into the company.
In recent months it has refocused its business, undergone significant restructuring involving 30 redundancies and shifted its business model towards corporate and Government customers and away from residential.
Senior Counsel on behalf of Smart Telecom Lyndon McCann told the High Court that there had been an unsuccessful take-up in the refocused business model.
Smart Telecom has 13,000 residential customers, 500 business customers and it provides broadband to 1,100 schools.
The company has 57 employees.
The High Court heard it has a reasonable prospect of survival with two potential investors waiting in the wings.