The judge who approved the debt deal found it was very likely that Thames Water’s creditors would have to pay for the costs of the restructuring – and he would have considered blocking the deal if they did not.
However, there is an added complication: Thames Water has appealed against the water watchdog’s determination, arguing that it needs more money to invest.
The high court also heard arguments in favour of the government taking control because it could be better for customers, and for a rival deal from a smaller group of investors.
Thames Water has won court approval for up to £3bn in emergency debt that will allow it to avoid collapse – at least in the short-term.
The debt package is an important staging post for the utility company, which supplies water and sewage services to nearly a quarter of the UK population, as it seeks to repair its finances.
