The High Court has granted an adjournment to Dublin's Light House Cinema, which is threatened with closure.

The court was hearing a petition to wind up the cinema which was issued by its landlord, John Flynn, following a rent dispute. The cinema says Mr Flynn doubled its annual rent in May 2010 from €100,000 to €200,000.

It says it is not in a position to pay the increased rent and has been trying to negotiate with Mr Flynn.

Today, counsel for the cinema asked the High Court to adjourn the petition for three weeks to allow the board of directors to meet to adopt a reasoned approach to the matter.

Following an objection to an adjournment by lawyers for Mr Flynn, Mrs Justice Mary Laffoy said she would adjourn the matter until April 15.

After the hearing, one of the cinema's founders, Neil Connolly, said he was happy that an adjournment had been granted to allow the parties to attempt to reach a settlement.

The four-screen Light House Cinema opened in Smithfield in May 2008 and employs 20 people.

The cinema benefited from Government grants worth €1.75m. Last week, the Minister for Arts, Tourism and Culture, Jimmy Deenihan, said the cinema might have to pay back the money to the State or alternatively he said a consortium involving the Arts Council and the Irish Film Board could run an art house cinema on the site.