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Thames Water received a £ 3 billion controversial loan for creditors, including Hedge Fund management, which should provide the largest water tool in the UK to prevent immediate renationalization.
A group of younger creditors, who stood up to significant losses under the agreement, challenged the Loan Agreement at the London Court of Appeal in a hearing that ended last week.
But the judges have ruled that the deal could move forward with only a small amendment to release directors to release future litigation.
The decision should provide strongly indebted access to utilities to fresh funds, while trying to raise capital to increase its long -term finances. However, the decision may be subject to further appeal in the Supreme Court.
Chris Weston, Chief Executive Officer of Thames waterHe said on Monday that the company remained of the “market -led” solution is in “the best interest of customers, taxpayers in the UK and the wider economy”.
Environmental campaigns, led by Liberal Democrat MP Charlie Maynard, have opposed the court plan, claiming it is in public interest for utilities to be rationalized under the special government administration regime.
Opponents are concerned about the interest rate of 9.75 %, plus other fees, which could make the water of Thames a total More than £ 800m. The company already pays at least £ 15m a month in a taxi of advisers, lawyers and consultants.
This is a development story
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