Challenge to £3bn rescue deal dismissed
A £300 million rescue loan will be provided to Thames River water after appeals to dismiss the deal.
A troubled company Retrieval loan was obtained in Februaryavoiding the prospect of debt companies controlled by the government.
But a small group of lenders opposed the terms of the deal, while Liberal Democratic MP Charlie Maynard argued that the additional loan was not in the public interest.
The additional funding allows Thames to continue operations for at least 12 months, giving it time to restructure its nearly £20 billion debt and try to attract new investment.
The reasons for the Court of Appeal’s ruling have not been released yet.
The BBC learned that Mr Maynard is still considering whether to submit the latest ruling to the Supreme Court.
Thames Water CEO Chris Weston said he was “satisfied” with the decision.
“We are still focused on putting the Thames water on a more stable financial basis as we look for long-term solutions to our financial resilience,” he said, adding that the company’s “turnover plan” could continue.
He added that in the coming months, the initial payment of £1.5 billion will be made in installments.
