Court dismisses challenge against eircom

Efforts to finalise a survival scheme for eircom can go ahead tomorrow.

A Commercial Court challenge to the examiner's proposals by one of the firm's creditors and a potential investor has been dismissed by the Commercial Court.

The troubled telecoms business and associated companies employ around 5,800 people.

This evening's judgment means eircom examiner Michael McAteer can try to finalise a survival scheme for the telecoms operator at meetings with creditors tomorrow.

It follows an unprecedented challenge by one of Eircom's creditors, DW Investment Management LP and investor HWP, whose €2bn cash bid for Eircom was rejected by the examiner.

They wanted tomorrow's meetings postponed and for the court to direct Mr McAteer to further consider the HWP bid.

Mr Justice Peter Kelly has refused.

He has found the examiner was appointed because of his expertise, the court's role is supervisory and its scope to intervene is limited to situations where the examiner is misbehaving or doing something wrong in law.