Westonbirt Fund LP, a member of an ad hoc group of Thames Water’s Class B creditors, had proposed an alternative plan, which its barristers claimed in written submissions was “substantially similar” to the company plan but included “better economic terms”.
The Class B creditors, as well as Liberal Democrat MP Charlie Maynard, are separately challenging the decision to approve the company plan at the Court of Appeal, which the judge said will “serve a useful purpose, even if the B plan can’t be pursued”.
But he said “after careful thought” they decided to put their plan before the court to “provide a safety net for the company” if the Court of Appeal overturned approval of the company plan, as otherwise, the utility would be “without any interim financing solution”.
Mr Justice Leech said on Wednesday that there was “no reasonable probability” that convening meetings of creditors to approve the second plan, put forward by a group of the utility’s Class B creditors, would serve “any useful purpose”.
But he gave Mr Maynard, who had told the court that Thames Water should be placed into special administration, and the Class B creditors permission to appeal against his decision, stating: “The press and public interest in this case makes it important, it seems to me, that the Court of Appeal should have the opportunity to scrutinise the decision and exercise of my discretion.
