A Dublin accountant, Mr John McStay, has been appointed by the High Court as Examiner to Lark Developments Ltd, a building and development company.

Mr Justice McCracken yesterday appointed Mr McStay as Examiner after considering a short report from Mr McStay, who was appointed interim Examiner to the company on October 18th.

The judge said it appeared the company had "sufficient prospects" to allow the examinership to continue. He noted the company had "valuable assets" and said it was well worth investigating whether sufficient capital could be brought into the company to keep it going until it could realise those assets.

At the earlier hearing, the court heard Lark, with registered offices at Ardfield House, Lucan, Co Dublin, had debts of more than £22 million (€27.93 million) and had experienced financial difficulties following a £14 million investment in a hotel project.

Yesterday, Mr Lyndon McCann, for Lark, said its projects were "on ice" for the moment.

The company's directors - Mr Anthony Murray of Killeany House, Maynooth, Co Meath and his daughter, Ms Fionna Murray - had asked the court to appoint Mr McStay.

The October 18th hearing was told Anglo Irish Bank, a secured creditor, was owed £3.6 million. The Revenue Commissioners are due £2.3 million and unsecured creditors are owed £17 million.

In an affidavit to the earlier hearing, Mr Murray said Lark began trading in 1979 and recorded after-tax profits of £3.5 million to May 31st, 2000.

However, despite the success of its residential, commercial and industrial development, Lark was now experiencing a cash flow crisis arising from its investment of £14 million in the development of Johnstown House, Enfield, Co Meath. Lark owns 79 per cent of the issued share capital of Johnstown.

Although the hotel was now open for business, it had not been fully completed because of changes in specifications of the hotel and spa during construction, he said. It required further investment to complete the project.