Thames Water urges high court to accept restructuring plan

Friday 27 December 2024 8:03 am
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Friday 27 December 2024 8:04 am

Thames Water has urged the Excessive Court docket to just accept its £3bn restructuring plan in a bid to keep away from renationalisation.

The corporate stated as we speak that over 75 per cent of collectors have backed the restructuring, and cited a brand new report claiming that no collectors shall be worse off on account of the plan.

In October, Thames Water launched a £3bn fundraising drive to maintain it going into subsequent 12 months by bringing in numerous collectors, which needs to be accredited by a courtroom.

The water firm reported that it had simply £500m in money, and hoped the brand new cash will lengthen its capacity to perform till not less than October 2025.

Earlier this month, Thames Water commissioned an impartial skilled report back to again a restructuring of its debt to the excessive courtroom, and as we speak launched a supplemental report back to additional strengthen its case.

Following the discharge of the unique report, Thames Water agreed to new phrases with its bond holders, together with break rights that kick in if the corporate continues to be rated at ‘junk bond’ standing by 2028.

The supplemental report as we speak claimed that no collectors could be worse off following the restructuring.

Nevertheless, a gaggle of lower-ranked collectors has disputed this, stating in courtroom paperwork {that a} totally different plan needs to be pursued to offer cheaper liquidity to the corporate.

The group “doesn’t think about that the excessive financing prices and entrenched management that the Class A collectors may have over any subsequent recapitalisation transaction, if the plan is sanctioned, is in the most effective pursuits of the group, its collectors or its prospects,” it stated in courtroom paperwork seen by Reuters.

Earlier this week, it was revealed that Thames Water diverted thousands and thousands of kilos it had pledged for environmental clean-ups in direction of funding bonuses and investor payouts.

Ofwat fined Thames £18m in December for breaking new guidelines on dividends that enables the regulator to take enforcement motion in opposition to firms which fail to tie payouts to efficiency.