Court to hear challenge to Eircom survival plan

Plans to finalise a survival scheme for Eircom are being challenged in the Commercial Court this afternoon.

Examiner Michael McAteer was due to finalise a survival scheme for the telecoms operator at a meeting with creditors this Friday.

That has been thrown into doubt after his rejection of a €2bn cash offer for the group from investors HWP and 3 Ireland.

In an unprecedented move, the spurned investor HWP and one of Eircom's creditors DW Investment Management LP want court orders postponing Friday's meetings.

They argue that under Mr McAteer's proposals to save Eircom, the group of creditors to which DW Investment belongs will get nothing, while if HWP's bid is accepted there would be a payout of €50m.

Eircom and associated companies employ around 5,800 people.