A legal action over the alleged exclusion of music promoter John Reynolds from involvement in managing the Electric Picnic festival, including band selection, has been adjourned to facilitate mediation talks.

Among a series of claims, Mr Reynolds has alleged the band The Killers was imposed against his wishes as a joint headline act for the 2012 event because the majority shareholders in the festival company, the FRD Group, needed that band for their Berlin festival a week later.

He claimed the FRD Group are pursuing a "one size fits all" principle for festivals to the detriment of the Electric Picnic's personality and uniqueness.

Mr Reynolds said the event aimed to be a festival that bands wanted to play at and the focus was on the whole festival, not a headline act.

He said he believed its trading loss last year was down to band selection.

In denying his claims, Melvin Benn, managing director of Festival Republic Dublin Ltd (FRD), argued the choice of The Killers did not cause the 2012 losses, which he believed were due to ticket prices being too high given the economic climate last year.

Mr Benn said FRD planned to make this year's event more affordable.

He also denied Mr Reynolds has been excluded from managing the event or that the FRD Group's controlling companies, Live Nation and Gaiety Investments, want to make the event just a part of its stable of festivals and outdoor events.

Mr Reynolds's POD Music Ltd has brought proceedings against FRD, which in 2009 paid €4.2m for a 71% stake in EP Festivals Ltd, a subsidiary of POD Music, alleging breach of a March 2009 shareholders' agreement concerning the Electric Picnic, and oppression of the petitioner's interests.

In proceedings under Section 205 of the Companies Acts, Mr Reynolds claims a refusal to allow him operate the festival as envisaged was causing considerable hardship and risk to POD Music.

Mr Justice Peter Kelly agreed to transfer the case to the Commercial Court but, on consent of both sides, adjourned it for further directions to allow for mediation.

Aidan Redmond SC, for FRD, said and Martin Hayden SC, for POD, said there had been engagement between the sides.