Creditors of the Wexford-based fabrics company, Schoepp Velours, will vote today on whether to accept a management buy-out to be proposed by the examiner appointed to the firm in July.
Yesterday the examiner, Mr Pearse Farrell, would not reveal the details of the scheme of arrangement before the creditors' meeting this morning.
However, other sources have disclosed that a management team, led by the chief executive, Mr Peter Hower, is to take a major stake in the company. Also involved is Mr Padraic White, a director of the firm and former head of the IDA.
At present the major shareholders are the German family, the Schoepps, who founded the Irish operation in 1979.
It is understood that under the plans, the Schoepp family may sell either all or part of their interest.
Under the scheme of arrangement, there will be about 30 voluntary redundancies, which have already been agreed with SIPTU, the union representing workers. At the moment 160 people are employed at the plant.
The examiner was appointed after the company was hit by a serious financial crisis, which resulted from problems with a range of latex furniture covering chemicals which proved unsuitable.
Mr Farrell, of the accounting firm, Farrell Grant Sparks, was appointed as examiner by the High Court in early July.
As part of the examinership Mr Farrell invited potential investment plans and said there was "a large amount of interest" in the company.
Under the scheme suggested by Mr Farrell, one of the largest creditors, the German bank Volksbank, has agreed to settle for £2 million, as opposed to £2.8 million.
Also under the scheme, ICC's £315,000 will be secured, preferential creditors will be paid fully over the next 12 months, and unsecured creditors will receive 10p in the pound in three payments over the next three months.
Each class of creditor will vote on the proposed scheme today at a meeting in Dublin and the matter will then be referred for final decision to the High Court on September 17th. Speaking yesterday, Mr Michael Wall, SIPTU branch secretary in Wexford, said his union was in support of the examiner's proposals and he expected the buy out team to "get the company up and running again".
