The interim examiner appointed by the High Court last month to upmarket hairdressing chain Toni & Guy (Ireland) Ltd believes the prospects for the company's survival are quite positive, the court heard yesterday.

It will decide on Monday whether the examinership should continue.

Mr Justice Peter Kelly was also told yesterday that a former financial controller of the company, Dal Singh, had sworn an affidavit denying allegations about his handling of the financial affairs of the company.

Among the claims made against Mr Singh were that the company had run up costs as a consequence of his "mismanagement" of fit-out projects.

It was also claimed Mr Singh had attempted to perpetrate a major fraud on the company resulting in a claim against it of some €1 million.

When the petition to have interim examiner Michael McAteer appointed as examiner came before the court yesterday, counsel for Mr Singh said her client was a named party in the affidavit of Alan Boyce, a director of the company, which grounded the petition.

Mr Singh accepted he was neither a creditor of nor contributor to the company but believed it was in the best interests of the court to be fully informed of all matters and for him to be allowed to refute the claims made, counsel said.

Mr Justice Kelly decided the affidavit by Mr Singh could be admitted on grounds that it included material which was not just about a defence of Mr Singh's reputation but also made claims of bad faith on the part of those who brought the petition to have the company placed in examinership.