Some of Thames Water’s creditors and Liberal Democrat MP Charlie Maynard can appeal against the approval of plans to restructure the utility at the Court of Appeal, a High Court judge has ruled.
Mr Justice Leech ruled earlier on Tuesday that a proposal to inject up to £3 billion in funding, known as the “company plan”, could be sanctioned just weeks before the struggling utility was set to run out of money.
A group of Thames Water’s Class B creditors had proposed an alternative “B plan”, which they claimed would provide the company with the same funding but on better terms and which should be adopted instead.
At a hearing dealing with consequential matters arising from the ruling on Tuesday, barristers representing the Class B creditors asked for the green light to challenge the judgment at the Court of Appeal.
Mr Justice Leech gave them the go-ahead to take their challenge to the Court of Appeal, stating: “The press and public interest in this case makes it important, it seems to me, that the Court of Appeal should have the opportunity to scrutinise the decision and exercise of my discretion.
“It should be important that the (Class B creditors) have the opportunity to run a considered appeal.”
The judge also ruled that proposed challenges over “procedural unfairness” and competition law could not be taken forward to the Court of Appeal, adding that he was “not satisfied that there was any fundamental lack of fairness”.
The creditors could still ask the Court of Appeal for the go-ahead to challenge the ruling on those grounds.
Mr Maynard, MP for Witney in Oxfordshire, said earlier on Tuesday, following the judgment, that the restructuring is “simply throwing good money after bad” and that he intends “to keep fighting for Thames Water’s customers” through an appeal.
I stand by my evidence to the court that allowing Thames Water to take on £3bn more debt is not in the interests of their millions of customers. They will all be paying the price for this futile, expensive, and extremely short-term bail out. @WindrushWasp
— Charlie Maynard 🔶 Liberal Democrat (@cammaynard) February 18, 2025
The company – England’s biggest water firm – has been at the centre of growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses at the UK’s privatised water firms.
The restructuring plan allows Thames Water to keep operating until 2026 through the provision of £1.5 billion of funding with a 9.75% interest rate, with a further £1.5 billion potentially available.
Lawyers for Thames Water Utilities Holdings Limited (TWUH), the parent company of Thames Water Group (TWG), told the court in February that it was set to run out money by the end of March, which they claimed was a “risk which cannot be run”.
The court heard that the company plan was approved by creditors holding more than 75% of its Class A debt, which is worth about £11.5 billion and is the least risky class of bonds in its debt pile.
But the Class B creditors proposed an alternative plan known as the “B plan”, which the court heard would provide the company with the same funding but on better terms and should be adopted instead.
Mr Maynard’s barristers said the company plan was a “poor short-term fix” and a “bridge to nowhere”, and that the firm should be put into special administration (SAR).
