The High Court has indicated that it will not approve a survival scheme for construction company MAC Interiors Limited.
The Revenue Commissioners, which is owed over €13m in 'warehoused' taxes, had opposed the application on legal grounds.
It claims that certain creditors were not correctly classified in the examiner's proposed scheme.
Today Mr Justice Michael Quinn indicated that he agreed with Revenue's argument regarding the classification of creditors and he believes the court does not have the jurisdiction to approve the proposed survival scheme.
However, the judge said he will give his full decision on the application in the coming days.
In a statement the company's CEO Paul McKenna expressed the firm's shock and disappointment over the judge's decision, and said it would await the publication of the full decision before deciding what its next step will be.
Earlier this year the company, which specialises in office fit outs, was granted the court's protection from its creditors, and Kieran Wallace, of Interpath Advisory, was appointed as the firm's examiner.
The examiner had denied that the proposed scheme was flawed.
The examiner said that he could not understand why Revenue had opted to oppose the scheme and said that all of the creditors will fare better under the plan compared to if the company was to be adjudicated bankrupt.
The examiner also argued that there was a clear benefit to the wider economy as well as Revenue if the survival plan is approved.
The court heard previously that the firm had traded very successfully in Ireland, the UK and continental Europe, with clients including Microsoft, AIB, Ryanair, Pinterest, Barclays Bank and Citibank.
However, it was badly affected by the pandemic restrictions curbing construction and subsequent inflation on construction materials.
It also sustained significant losses from its involvement in a project in Liverpool, England.
The company, has 31 full-time employees and the court also heard that it has up to 1,200 people hired as subcontractors on various projects it is involved with.
