Cavan Crystal Glass Ltd will continue to have the protection of the High Court while further attempts are made to put a rescue package in place and to save the company and its 80 jobs, it was decided by Mr Justice Shanley yesterday.

An application had been made by the court appointed examiner, Mr David Hughes, to have the protection of the court withdrawn after he concluded the company was not capable of survival. The application was supported by the Ulster Bank.

But the company's managing director, Mr Neil McKay, in an affidavit, said that he had seven investors, including himself, Bord Failte and the Peace and Reconciliation Fund, willing to inject a total of £1.093 million into the company.

He also added that a new management team would be appointed and that former Coopers & Lybrand partner, Mr Patrick Shortall, who had considerable experience in company rescue, had agreed to join the company as a non-executive chairman subject to certain terms.

Mr Justice Shanley, in extending the period of the court's protection for 30 days from May 27th, said there was an application before the court from the company and Mr McKay, which was supported by Bord Failte, to adjourn the examiner's request. He had to balance the risk of prejudice to Ulster Bank against a decision refusing the adjournment, which might condemn the company to insolvency and to cease trading whereas it might survive if more time were given.

Mr McKay had stated that, since the appointment of the examiner, the company was trading in a reasonably profitable manner and a situation existed as of yesterday that the company had a cash surplus in the bank. The judge said he would grant the adjournment.