Up to 50 workers were turned away at the construction site of the new A and E unit at Letterkenny Hospital in Co Donegal this morning after it emerged that the company building the unit has ceased work on all its current projects.
A company, which is owned by developer Bernard McNamara, is facing liquidation as he battles efforts by NAMA to appoint a receiver.
Mr McNamara is believed to have overall debts of €1.5bn.
Senator Pearse Doherty told Highland Radio said the legal wrangle must not obstruct the opening of the unit, especially as the project is almost complete, with only a snaglist left to finish.
Meanwhile a ground sub-contrator for McNamaras, working on a new project at Tallaght IT in Dublin, has said that he has not been paid by the developer and has ceased work.
He claims that he was told the company went into receivership last night.
Around 20 of his workers have downed tools at the site.