HONG KONG-based Hutchison Whampoa, the parent company of mobile operator 3 Ireland, and a group of junior lenders are taking a legal challenge against a survival scheme being prepared for Eircom.

New York-based DW Investment Management LP, which is representing 52.4 per cent of creditors holding €350 million in floating-rate loan notes, and Hutchison Whampoa Ltd will today seek to challenge a scheme of arrangement due to be put before Eircom’s creditors on Friday by the examiner, Michael McAteer of Grant Thornton.

This follows a decision by Mr McAteer last week to reject a revised €2 billion cash offer for Eircom from 3 Ireland and HWL.

Mr McAteer rejected the bid on the basis of its value and conditionality, which included the offer being subject to due diligence.

His decision was supported by senior lenders, who have agreed to a 15 per cent haircut on their €2.7 billion loans and who are set to take ownership of Eircom.

Under the examiner’s plan, the FRNs would have their debts wiped out. DW claims its clients are being unfairly prejudiced by the scheme.