The restructuring plan submitted by Thames Water Utilities Holdings Limited under Part 26A of the Companies Act 2006 for the liquidity extension transaction, previously sanctioned by the High Court of Justice of England and Wales, has been upheld, subject to a limited modification regarding releases by Thames Water Utilities Holdings Limited and TWUL.
Chris Weston, CEO, Thames Water commented:
“We are pleased that the Court of Appeal has today decisively refused the appeals and upheld the strong High Court decision to sanction the Company Plan. We remain focused on putting Thames Water onto a more stable financial foundation as we seek a long-term solution to our financial resilience.
“Today’s news demonstrates further progress. We continue to work closely with our creditors, enabling us to access liquidity to continue to implement our turnaround plan so we can deliver better results for our customers and the environment while seeking to attract new capital into the business. As we have previously stated, the Company Plan will not affect customer bills but will provide continued investment in our network to fix pipes, upgrade our sewage treatment works, and maintain high-quality drinking water. We remain of the view that a market led solution is in the best interest of customers, UK taxpayers and the wider economy.”
The Company stated that it will now engage with its creditors to fulfill the remaining conditions precedent for the super senior funding and secure any necessary waivers. To facilitate this, the Company plans to launch a STID Proposal and seek consents under the super senior funding shortly, along with certain turnover arrangements. Subject to the outcome of these consent processes, the initial £1.5 billion tranche is expected to be drawn in instalments over the coming months.
Meanwhile, TWUL’s equity raise process is progressing in parallel. On 11 February 2025, TWUL announced that it had received proposals from several interested parties and is currently undertaking a detailed evaluation of each bid. Further updates regarding the equity raise will be provided in due course.
