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Thames Water has been given the green light to borrow up to £3bn at high cost in a bid to avoid insolvency, after London’s High Court signed off on a controversial creditor bailout.
The utility, already straining under £19.5bn of debt, had sought court approval to borrow up to £3bn from its top-ranking creditors, which the company claims will give it breathing room to raise equity from new investors and renegotiate its debts.
Mr Justice Leech, who presided over a week-long hearing at London’s High Court earlier this month, gave the green light for the loan in a 178-page judgment on Tuesday, saying that it met the criteria under English corporate law and was not unfair to lower-ranking bondholders.
This is a developing story
