Meridian Communications, the parent of Imagine, won a temporary High Court injunction yesterday preventing Eircell cutting off supply to its customers.

Meridian chairman Mr Sean Bolger alleged that Eircell was attempting to destroy Meridian's business. Mr Justice Daniel Herbert was told that negotiations were taking place with a competitor for the sale of Meridian's 20,000 subscriber base, which was worth not less than £10 million (€12.7 million). The injunction continues until next week when Mr Justice Kevin O'Higgins is expected to make a number of orders relating to his findings on the dispute between Meridian and Eircell which he made in a judgment on April 4th. The order also restrains Eircell from presenting a petition to wind up Meridian without the court's permission.

At the Judge's request, Meridian gave an undertaking not to dispose of or assign its subscriber base pending next week's hearing. Mr Bolger in his affidavit alleged that before Mr Justice O'Higgins gave his judgment, Eircell had suggested £1.4 million was due to it but last Friday it had billed Meridian for £14.3 million, which Meridian disputed. Mr Bolger said it was essential that Meridian's assets be protected by continuing in business and maintaining its customers, pending a decision. Mr Bolger said communications with Eircell led him to conclude that it proposed terminating service supply to Meridian and this would mean Meridian customers losing the use of their mobile phones.

High Court proceedings had been at hearing for about a year before Mr Justice O'Higgins. The judge held Meridian did not need a licence to operate but it lost its claim to be entitled to have a discount agreement renewed as a matter of contract.

Mr Bolger said he was satisfied that Eircell was anxious to destroy the value of Meridian's subscriber base. At present, Meridian was paying its debts as they fell due.