Three banks are likely to appoint a receiver to house builder McInerney later this week after the High Court refused to allow rescue plan for the company to go ahead.
The High Court appointed Bill O'Riordan of Pricewatershousecoopers as examiner to the company last September and placed it under the court's protection.
The company owes a syndicate of three banks, Anglo Irish, Bank of Ireland and KBC, over €110 million in secured loans.
Today, Mr Justice Frank Clarke shot down a rescue plan proposed by Mr O'Riordan that involved an offer of €25 million from US investor, Oaktree Capital, which is bidding to buy the company, to the banks in full satisfaction of all liabilities.
Justice Clarke said that the proposal was unfairly prejudicial to the banks, who are proposing to appoint a receiver.
The lenders' long-term plan is to build new houses on McInerney's site and sell them.
The judge said that the banks had made a credible case that they could generate a reasonable return from this.
McInerney employs 109 people, it is not known if the banks' receiver would keep those staff on.
The company has not yet made a statement on the outcome of the case.
