Thames Water Utilities Holdings Limited (TWUH), the parent company of Thames Water Group (TWG), England’s largest water company, is set to run out of money by late March and risks entering special administration if a judge does not approve the scheme, known as the company plan, to inject up to £3 billion to keep it afloat.
They have previously claimed that one term of the company plan known as the June release condition, which concerns the release of further funding, “holds the company to ransom”, and that the company’s proposal leaves them worse off, meaning it cannot be approved.
Tom Smith KC, for the company, has previously said the plan was “an interim measure” to keep the company running before a “substantive restructuring” due later this year.
The company plan would provide £1.5 billion of funding, with a further £1.5 billion potentially available and a 9.75% interest rate.
A hearing to decide whether the “B plan”, which its supporters said provides a “better result for the company”, can be put to creditors is due to be held on Wednesday.
