Irish businessman Barry O'Callaghan has confirmed that he and other Irish investors face losses of hundreds of millions of euro as a result of a dramatic decline in the value of his publishing company, EMPG. The company was formerly known as Riverdeep.

Mr O'Callaghan confirmed that the company, which employs 6,000 people worldwide, is undergoing a financial restructuring to deal with multi-billion euro debts.

In a statement yesterday, 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.