Talks were under way last night aimed at ending a legal dispute involving Eircom, the Royal College of Surgeons in Ireland (RCSI) and one of the country's biggest developers.
Eircom has agreed to sell the leases on a three-building complex it occupies on St Stephen's Green, Dublin, to Radora, a consortium of developers.
Radora is headed by Bernard McNamara, one of the country's biggest players in construction and development.
However, the RCSI, which is the ultimate owner and landlord, has withheld its consent to the sale.
Eircom claims the RCSI is acting unreasonably in refusing consent. It is understood that Radora - which wants to redevelop the site - has put a number of bank guarantees in place to cover any liabilities it may have under the terms of the lease.
The case was due before the High Court yesterday, but the parties began settlement talks in the morning. Following several hours of discussions, the parties told Mr Justice Peter Kelly yesterday afternoon that they had worked out a draft agreement, and hoped to finalise a settlement by this morning.
The parties are due to appear in court again this morning. If they fail to reach an agreement, the case is likely to go ahead today.
The complex is Eircom's headquarters. Its predecessor, Telecom Éireann, leased the buildings in 1982 and moved in two years later.
The company's leases on the site run to 2016 on two blocks and to 2023 on a third building. However, the telecoms group is moving to a new building close to Heuston Station, Dublin, and will no longer need the site at St Stephen's Green.
Radora's other backers include Gerard O'Reilly and David Courtney.
