Thames Water Secures Court Approval for £3 Billion Emergency Loan Plan

The utility company must finalize creditor approval and navigate regulatory decisions to avoid insolvency by March 2024.

Thames Water has received High Court approval to proceed with a £3 billion emergency loan plan, critical to maintaining operations beyond March 2024.
The loan, backed by over 75% of senior creditors, faces opposition from lower-ranked creditors who argue for an alternative plan with lower interest rates.
The proposed loan includes a 9.75% interest rate and extends debt maturities by two years, aiming to stabilize the company ahead of further restructuring in 2025.
Regulator Ofwat is set to announce this week how much Thames Water can increase customer bills, a decision pivotal to the company's long-term financial plan.
Without the loan and subsequent restructuring, Thames Water risks entering special administration, which could lead to government intervention or nationalization.