Mr Justice Thomas Leech today (18 February) allowed the parties opposing a restructuring plan for Thames Water to challenge the judgment he delivered this morning approving the plan before the Court of Appeal.

Additionally, a convening hearing for an alternative restructuring plan presented by the opposing “Class B” creditors will happen tomorrow (19 February), even if the plan backed by the “Class A” creditors has now been approved, the judge said during a consequentials hearing in London today right after the delivery of his judgment.

The parties that will bring appeals against the approval of the restructuring plan are the Class B creditors, creditor of the plan company Thames Water Limited (TWL) and Charlie Maynard, the Liberal Democrat Member of Parliament for Witney, who raised objections on “public interest and customer interest” grounds.

The judge narrowed the number of grounds of appeal that the Class B creditors are allowed to make, while allowing all the narrower points of appeal of the other two appellants.

The court had pressure to give judgment due to a looming 24 March liquidity cliff edge, an estimated 17-working day period required for the implementation of the plan as well as the need to leave time for the expected appeal process.

For this reason, Justice Leech has also allowed the plan company to take some first steps in its restructuring plan, provided these can be reversed if the Court of Appeal accepts the challenge of the judgment.

After a five-day marathon sanction hearing between 3 and 7 February, which attracted huge interest from observers and the press, Justice Leech today gave his green light to the plan backed by the company’s Class A creditors that seeks to secure up to GBP 3bn of interim financing and extend maturities, creating breathing space for the company’s debt stack of almost GBP 19bn.

Check HERE to see the latest analysis of Thames Water restructuring plan.

Thames Water is the UK’s largest water and wastewater services company. It owns a network of over 32,000 kilometers of water mains and 109,000 kilometers of sewers that cover London, the Thames Valley and the home counties and approximately 354 wastewater and treatment sites and 88 water treatment works. It employs approximately 8,000 people.

The case is CR-2024-00754 Thames Water Utilities Holdings Ltd before the High Court of Justice Business and Property Courts of England & Wales.