An application for the appointment of a provisional liquidator to a Co Kildare grain merchant, alleged to have liabilities of more than £20 million (€25.4 million) will be moved before the High Court today. Mr James Connolly SC, for the company - Edward Kavanagh (Maynooth), of Manor Mills, Maynooth, Co Kildare - told Mr Justice McCracken the firm was putting forward a scheme of arrangement. He asked that the court should not appoint a liquidator until the scheme was put before it this morning.

The judge said that, subject to what he heard from the firm, it seemed from papers before him this was an appropriate case for appointment of a provisional liquidator but he would hear from both sides today before deciding.

The application for the appointment of a provisional liquidator was made yesterday by Mr John O'Donnell, for Quinns of Baltinglass, Co Wicklow, a supplier to the firm which claims to be owed £1 million.

Mr O'Donnell said there was no question of examinership or receivership in the situation. There was £20 million in liabilities. He said the company wanted to put forward a scheme of arrangement and it claimed Quinns would do better under that scheme.

But his clients wanted to go ahead with the application for appointment of a provisional liquidator. It was being suggested the matter be put back but his clients were concerned because of the state of affairs in Kavanaghs.

Mr Connolly said he was asking the court to look at the wider picture. His client was contending that, in a liquidation, the various creditors would get 38p in the pound while, under the proposed scheme of arrangement, they would get 70p.

Mr Justice McCracken said it appeared, subject to what he heard from the company, it would be in its interest to have a provisional liquidator appointed.