Thames Water - Case Update

Thames Water has received support from over 75% of its top-ranking Class A creditors for a £3 billion rescue deal which, if approved by the court, will see the company avoid being renationalised under the special administration scheme, at least for the foreseeable future.

The embattled utility has been struggling to service its £15 billion debt load. On October 25, the company announced a proposed transaction to extend its liquidity runway, including up to £3 billion of new money in addition to access to cash reserves and debt extensions. Thames Water launched a consent process for a transaction support agreement (“TSA”) in connection with the proposed transaction. Yesterday, the company announced that over 75% of the company’s Class A debtholders have entered into the TSA.

This represents an important milestone in implementing the proposed transaction. The convening hearing is scheduled for 17 December and the sanctions hearing is expected to be held in January.

Notably, another group of Class B debtholders has made an alternate offer to Thames Water and said it intends to continue negotiations with the company.