The English court has sanctioned the group’s interim financing plan, but the opposing creditor group’s appeal will be heard on an expedited basis.
The last 12 months have been turbulent for Thames Water. Following the court’s refusal to convene creditor meetings for the “alternative” Class B restructuring plan, the fate of the company’s proposed interim financing now seems clear. The Court of Appeal will hear the Class B creditors’ appeal of the sanction in the coming weeks. This will produce a binary outcome for the company: either the appeal will fail, in which case the company will continue with its own equity-raising timetable and propose a second “recapitalisation” restructuring plan (RP) by next September; or the appeal will succeed, in which case it would appear that the company will have insufficient time to raise interim financing to prevent its collapse into special administration before the end of March.
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