Up to 50 workers were turned away at the construction site of the new A&E unit at Letterkenny General this morning.
The company building the new A&E unit at the Hospital has ceased work on all it's current projects.
It's been confirmed that a receiver has been appointed to a flagship company formerly owned by the developer Bernard McNamara.
Mc Namara is believed to have overall debts of 1.5 billion euro.
Senator Pearse Doherty says this legal wrangle must not obstruct the opening of the unit.
Meanwhile, Donegal North-East Deputy Joe McHugh is seeking a meeting with management immediatley to clarify the issue.