The High Court has appointed an interim examiner to the Pilot Training College in Waterford.
The court was told that 350 students have been affected by the collapse of the training courses run by the college in the United States.
The court directed that all 350 be notified by email about the examinership.
It will be back in court again next Thursday when creditors can tell the court what attitude they intend taking towards the examinership.
Barrister Mark O'Mahony told the court an independent accountant had found that the company had a reasonable prospect of survival if it changed its business model and found an investor.
The court heard there had been expressions of interest from three investors.
It was set up in 2002 and much of its training was outsourced to the Florida Institute of Technology and a related company FIT Aviation.
The court heard these companies were now taking legal proceedings against the Pilot Training College and are expected to object to the examinership.
The court was told that the Pilot Training College had become concerned that the training being provided in Florida was seriously deficient.
The college said the instructors were inexperienced and the training was taking much longer than anticipated.
Mr O'Mahony said the company could no longer provide any training whatsoever because the Irish Aviation Authority had suspended its approval of its training courses and this had led to its current financial difficulties.
He said the company intended to change its business model and concentrate in the future on providing just one element of pilot training - multi engine instrument training.
He said Waterford was uniquely suited to provide this kind of training. The independent accountant's report found that the assumptions and projections made about profitability if this model was followed were reasonable.
In an affidavit, company director, Michael Edgeworth said the company fully recognised and sincerely regretted the distress, confusion and anger the collapse of the training courses in Florida had caused to the 179 students who were in Florida at the time.
He said 93 of those have had their future training organised by their respective airlines. He said the company had also worked with the CAE Oxford Aviation Academy to formulate alternative training for the others.
39 have been offered a credit of €3,500 in respect of deposits paid by them to the company.
The remaining students have been categorised into groups according to their stage of training and performance to date, the court heard and the company hopes to be able to inform them in the near future whether or not Oxford will be able to offer them continued training.
Mr Justice Brian McGovern appointed Michael McAteer as interim examiner.
