The Court of Appeal has rejected an appeal against a £3bn rescue package for Thames Water after a three-day hearing last week, preventing the º£½ÇÊÓƵ's largest water supplier from potentially entering special administration (SAR).
Critics have voiced concerns that the £3bn emergency loan from a consortium of Class A creditors merely offers a temporary solution to Thames Water's issues and that a SAR would better serve public interest, as reported by .
The company is grappling with over £19bn in debt and faces demands to improve its ageing infrastructure and tackle sewage leaks.
The appeal was lodged by a faction of Thames Water's Class B creditors and Liberal Democrat MP Charlie Maynard, following a previous High Court ruling.
The court is expected to release a full explanation for its decision at a later date. During the proceedings, Andrew Thornton KC argued that the terms of the agreement were "mispriced and inappropriate" and primarily designed to benefit senior lenders.
TWUH, Thames Water's parent company, along with its Class A creditors, contested the appeal. Thames Water CEO Chris Weston welcomed the judgement, stating: "We are pleased that the Court of Appeal has today decisively refused the appeals and upheld the strong High Court decision to sanction the Company Plan."
He added, "We remain focused on putting Thames Water onto a more stable financial foundation as we seek a long-term solution to our financial resilience."
"Today's news demonstrates further progress."
A spokesperson for the group of Class A creditors said: "The decision from the Court is clear and we hope this brings to an end the ongoing legal distractions so all parties can focus all efforts on securing billions in fresh equity and new long-term ownership for Thames Water."
They also advocated that "A market-based solution is the best route to achieving financial sustainability for the company in the coming months and will deliver the complex operational turnaround, improved service and environmental outcomes customers rightly expect and deserve."
Conversely, the Class B creditors have expressed reservations, with a statement revealing they are contemplating an appeal to the Supreme Court "to ensure that customers and the broader public are not forced to bear the costs of a deeply flawed restructuring process."
Meanwhile, Charlie Maynard MP sharply criticised the current state of affairs at Thames Water, stating, "Thames Water remains a cash cow for its lenders, while its 16m customers are left to foot the bill for the company's ludicrously expensive interest charges and advisory fees."
He did not mince words when he demanded, "It is in the government's power to end this now for the benefit of the British public and seek to put the company into special administration."
Maynard pressed for urgent action, insisting, "We must not stand back and allow Thames Water's lenders to keep lining their pockets at the expense of customers and the environment while our regulators sit on their hands and the company pumps gallons of sewage into our rivers, neglects basic repairs and hikes up customers' bills."
A government spokesperson stated: "The company remains stable and the government is closely monitoring the situation. It would be inappropriate to comment further on the financial matters of a private company."
