The decision of Dell to cease manufacturing in Limerick and the loss of major routes at Shannon Airport are just two of the reasons why the Lynch Hotel group has been placed into examinership.

Management at the hotel group,which operates the South Court Hotel and the George Boutique Hotel, have appointed Michael McAteer of Grant Thornton to conduct the examinership proceedings, which could continue until the end of October.

Judge Mary Finlay-Geoghegan approved the appointment of Mr McAteer in the High Court after the court was told that an independent accountant's report showed that the group had a reasonable prospect of survival as a going concern.

The report, prepared by accountancy firm Howarth Bastow Charleton, states that the family-owned business has been hit by a number of setbacks.

It states there has been a collapse of hotel room rates and occupancy in Limerick due to what it says is the ''unsustainable increase'' in new hotels in the city.

The High Court heard that the company, which employs 530 people, had debts of €22.85m.

The George Hotel

Lynch Hotel Group hopes to agree rent cuts with landlords and strike a deal with the Revenue Commissioners for a new tax clearance certificate, as it attempts to avoid liquidation.

"It is business as usual in all seven of our hotels. We are professional hoteliers with a fundamentally sound business, and at this time are planning to restructure our financial position," said the group's owner Michael B Lynch.

Customers with concerns about events booked at one of the group's hotels can contact a dedicated customer support line at 1890-669900.