Thames Water Secures Rescue Loan, Averts Nationalization Threat
A London court has granted Thames Water a crucial rescue loan, providing financial breathing room as it negotiates a restructuring with its lenders.
The £3 billion loan is backed by existing senior creditors, including Elliott Management, Silver Point, and Pimco. It follows opposition from junior creditors and a UK politician who argued the loan was too costly.
Thames Water, the UK's largest water and sewer company, faces imminent debt maturities and payments. The loan will prevent a cash crunch that could lead to special administration, a temporary nationalization process.
During a five-day hearing, junior creditors proposed an alternative plan they claimed was cheaper and more flexible. However, their request was rejected. Additionally, a lawmaker argued for temporary nationalization to protect consumer interests.
The loan agreement will provide Thames Water with the necessary liquidity to meet its obligations and continue restructuring negotiations.