LONDON - Thames Water Utilities Limited (TWUL) has announced progress in its restructuring plan, which has garnered approval from over 90% of secured debt creditors. The plan, proposed by its holding company, Thames Water Utilities Holdings Limited (TWUHL), is set to undergo a sanction hearing by the High Court of Justice of England and Wales from February 3 to February 6, 2025.
TWUL maintains that the restructuring plan is the sole actionable strategy to secure the equity investment necessary for long-term stability. In light of this, TWUL has initiated a Short-Term Issuance Debt (STID) Proposal to gain the consent of the Majority Creditors. This proposal seeks to facilitate the commencement of a restructuring plan by Class A creditors, mirroring the terms of the existing Company Restructuring Plan (Company RP), with minor consequential changes.
The STID Proposal also includes steps for obtaining consent from Class A Creditors and a waiver for any Defaults or Events of Default associated with the initiation of the Class A Restructuring Plan (Class A RP). This initiative is part of the Interim Recapitalisation Transaction (JO:TCPJ), which follows the same terms as the Company RP.
No bondholder meetings are scheduled in relation to the STID Proposal, and eligible Class A Debt Providers will be contacted directly by their Class A DIG Representative for voting purposes. Documents related to the STID Proposal are accessible on TWUL's investor relations website, and stakeholders are encouraged to review the proposal and seek independent legal and financial advice if needed.
This update comes as Thames Water, the UK's largest water and wastewater services company, navigates financial restructuring amidst a challenging operational landscape. The outcome of the upcoming sanction hearing will be pivotal in determining the company's ability to execute its proposed restructuring plan.
The information regarding these developments is based on a press release statement issued by Thames Water Utilities Limited.
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