A petition for the court winding up of a Co Kildare grain merchant, with alleged liabilities of more than £20 million (€25.4 million), was adjourned at the High Court yesterday after it was indicated a creditors' meeting was to be held. Last month, the court appointed Mr David M. Hughes as provisional liquidator to Edward Kavanagh (Maynooth), Manor Mills, Maynooth.

The appointment was sought by Quinn's of Baltinglass, a creditor which claims to be owed £966,000 by the company, and was supported by a large number of creditors.

Yesterday, when the petition for the winding up of the company came before Mr Justice McKechnie, Mr James Connolly SC, said the attitude of the petitioning creditor was that it would be preferential to have a creditors' winding up of the company and he was agreeing with that proposal. In that situation, the provisional liquidator, Mr Hughes, would be the liquidator.

The required statutory notice for such a meeting was 10 days, Mr Connolly said. He suggested the matter be put back for two weeks. Counsel for Mr Hughes and other creditors supported the proposal to have a creditors' winding up and there was no objection to the matter being put back.

When appointing the provisional liquidator, Mr Justice McCracken heard the company had liabilities of £20 million and assets valued at about £14 million.

Mr Edward Kavanagh, a director of the company, said its problems had arisen through a recession in the pig and poultry industries which began in 1999 and had exacerbated since.