A provisional liquidator who was last week appointed to a Co Kildare grain merchant, which is alleged to have liabilities of more than £20 million (€25.39 million), was yesterday given powers to dismiss and retain employees of the company.

Mr Eoin McCullough, for Mr David M. Hughes, provisional liquidator of Edward Kavanagh (Maynooth), Manor Mills, Maynooth, indicated to Mr Justice McCracken that it was planned to retain 16 of the company's 42 employees to assist the liquidator in his work and dismiss the remaining 26.

Although all the employees had been served with redundancy notices, they remained at the company, counsel said. If they were dismissed, it would be easier for them to secure unemployment benefit than if they left voluntarily.

The judge also granted an application by Mr James Connolly SC, for the company, to reduce from three weeks to two weeks the notice to be given to creditors of a meeting on November 23rd for the purpose of discussing and voting on a scheme of arrangement.

The judge further directed that the provisional liquidator was permitted to give to creditors of the company such list of creditors as he could. Such a list had been sought by Mr John O'Donnell, for Quinns of Baltinglass, Co Wicklow, which claimed to be owed £966,000. Mr O'Donnell added his client was concerned that the company still appeared to be compiling financial information although the scheme of arrangement was supposed to be ready last week and two different figures had already been given to the court as to what dividend creditors might expect. His client wanted such list of creditors as available to Mr Hughes to ascertain the views of other creditors.

When appointing the provisional liquidator last week, 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 worsened since.