Plans to restructure Thames Water have been approved by a judge of the Supreme Court, just a few weeks before the wrestling use was no longer not to have money anymore.
Thames Water Utilities Holdings Limited (TWUH) is approximately £ 16 billion in debts and will need £ 3.3 billion for the next five years to maintain it.
TWUH is the parent company of Thames Water Group (TWG) – the largest water company in England with around 16 million customers.
Earlier this month, Mr. Justice Leech heard arguments for several days about a restructuring plan, known as the 'business plan', which, if approved, would provide a loan of a maximum of £ 3 billion with an interest of 9.75%.
The lawyers of TWUH claimed that the company would enter a special administration (SAR) if the plan would not be approved, but a smaller group of secondary creditors proposed an alternative plan that is known as the 'B -plan'.
The court heard that the B -plan would provide the company the same financing, but on better conditions and should be assumed instead.
In an opinion today, Mr Justice Leech ruled that the 'relevant alternative' for the approved business plan was SAR.
He said, “After I have taken into account the public interest to guarantee the uninterrupted provision of vital public services, I nevertheless exercise my discretion to punish the plan.”
Thames Water Utilities Holdings Limited (TWUH), the parent company of Thames Water Group (TWG), the largest water company in England with around 16 million customers, is approximately £ 16 billion in debts and will need £ 3.3 billion in the coming five years to run
A hearing for the same judge, which deals with consistent cases arising from the judgment, will start later on Tuesday.
A hearing to consider whether the 'B -plan' can be brought to creditors for approval can also be held on Wednesday.
Thames Water -chairman Sir Adrian Montague has said that the approval of a £ 3 billion rescue loan for the company by a judge with the Supreme Court 'marks an important milestone'.
He said it is “an important step to strengthen our financial resilience in the long term.”
“Crucial, it enables the management team to continue with the turnaround,” he added.
Chief Executive Chris Weston said it is “good news for our customers, brings our company to a stronger financial foot and enables us to continue to invest in our network and to deliver critical infrastructure upgrades for our customers and the environment.”
This is a breaking news story that more must follow.
