Creditors of the Jeanie Johnston replica famine ship project voted unanimously in Tralee yesterday to accept a scheme to save the €13.6 million project from forced liquidation.
Under the arrangement, proposed by the board of the company, the 150 unsecured creditors will get 60 per cent of the €1 million owed to them.
The local authority creditors, Kerry County Council and Tralee Town Council, who are owed between them some €3.8 million, will see their debt converted to deferred shares.
Shannon Free Area Development Company (SFADCO) and the Department of Arts, Heritage and the Gaeltacht will be granted charges on the ship for the €1.9 million Exchequer grants provided through them to the company.
In addition, a SFADCO loan of almost €200,000 is to be converted to deferred shares.
The €3.6 million provided by the Department of Communications, Marine and Natural resources will not have to be repaid, and a portion of that amount will be converted into equity in the company.
The matter now goes back to the High Court for approval, following which a new board will be appointed and the creditors paid within 21 days.
The new owners of the ship will be Kerry Group plc, the councils, and Shannon Free Area Development Company.
Mr Brendan Dineen, secretary and general manager of the Jeanie Johnston project, described the vote as "a great relief".
He said it marked an end to "the physical and emotional exhaustion" of the past 18 months.
"There was a worry for the last year and a half that people might not be paid ... A lot of these people have done without their money for close on two year. They have been extremely generous and extremely supportive throughout," Mr Dineen said.
The unsecured creditors were mostly Irish and local. Two of the creditor companies are from the UK and one is from the US.
Missing the first voyage deadline to North America "cost the company" in terms of sponsorship and corporate events earnings, Mr Dineen said.
"Missing the second deadline was devastating," he added.
"But people can now draw a line in the sand and move forward. The way is open to continue with plans for the voyage in 2003."
The Jeanie Johnston has already passed its marine certification with flying colours. It will now be moved to safe harbour to complete crew training and prepare the vessel for a transatlantic voyage commencing in late January 2003.
It is scheduled to arrive in the southern US around mid-March.
The new board will look at detailing the programme of the cities to be visited.
Responsibility for a long-term business plan will also rest with the new board. Suggestions for the vessel have ranged from a museum to a sail training vessel.
The business plan for the next 12 months, which is included in the new scheme, sets out projected earnings of over €800,000, much of it from the US voyage, from sail training and from functions and visitor admissions.
The company will now also complete the sale of the site of the shipyard and buildings at Blennerville, for €1.46 million.