A group of businesses owed €4-€5 million by troubled telecoms group Smart says it intends safeguarding creditors' rights while the company goes through a rescue plan.

Smart's shareholders are to be asked to vote next Tuesday on a proposal that will see it taken over by its 20 per cent shareholder, Brendan Murtagh, through his vehicle Bidco, which will assume all its liabilities.

In return, Smart will get 10 per cent of Bidco.

Smart is reported to have liabilities of €40 million, but the creditors will have no role in Tuesday's meeting, as that is limited to shareholders.

Representatives of around 30 businesses owed money by the company turned up for the first meeting of the Smart Creditors' Action Group, which was held in Dublin yesterday. They are owed a total of €4-€5 million.

Accountant Martin Ferris of Ferris and Associates chaired the meeting.

The action group issued a statement afterwards saying that it intends ensuring that all outstanding creditors of the company are treated in a proper and responsible fashion.

It plans to meet again after Tuesday's shareholders' meeting.

Smart shareholder Des Carrick, who is seeking the support of other stockholders for his attempt to prevent the transfer to Bidco, said yesterday that he is close to getting the backing he needs. He will need holders of more than 25 per cent of the company's share capital to defeat the proposal.