Thames Water Secures £3 Billion Rescue Package

Thames Water, Britain's largest water company, has secured a £3 billion rescue package approved by the High Court to avert a financial collapse. The firm, burdened with approximately £19 billion in debt, faced the possibility of temporary nationalisation but can now proceed with restructuring efforts. The plan includes a 9.75% interest loan from senior creditors, providing Thames Water with an immediate £1.5 billion, with potential for more, to maintain operations and address financial instability. Critics, including junior bondholders and campaigners, argue the deal is costly and serves only as a temporary relief, with the company facing continued challenges such as the need for a significant equity raise and regulatory approval for higher customer bills. Mr Justice Leech acknowledged the high costs and creditor benefits but sanctioned the plan citing public interest in maintaining service continuity. Nevertheless, there is potential for appeals against the ruling, as stakeholders continue to debate the best path forward for the beleaguered utility.