Educational media company EMPG, formerly Riverdeep, has confirmed it is in discussions which will result in 'comprehensive' financial restructuring.

Fine Gael said it appears that Irish shareholders will lose all of their investments as a result. 'Many of these investors were funded through large loans from Anglo Irish Bank, which is now wholly owned by Irish taxpayers', Fine Gael's George Lee stated.

RTE News understands stockbroking company Davy has been in touch with a number of investors informing them that their equity has been wiped out.

The talks with lenders are likely to see the banks take ownership of the company at the expense of the Irish shareholders.

EMPG, which is led by 39-year-old Irishman Barry O'Callaghan, owns Houghton Mifflin Harcourt, a major US educational publisher.

In a statement, EMPG said it was holding discussions with its lenders to put it on a strong financial footing.

'These developments have no adverse effect on our day-to-day operations, on our employees, or on the nature and quality of the service we provide to our customers and business partners,' the statement said.

'Barry O'Callaghan and the senior management team will continue to lead the company following the implementation of the restructuring plan. EMPG will continue to create jobs and hire people in Ireland, where we will maintain our headquarters for digital products research and development,' the statement added.