Thames Water Utilities Holdings Ltd, Re
| Judge | Mr Justice Leech |
| Neutral Citation | [2025] EWHC 338 (Ch) |
| Date | 18 February 2025 |
| Year | 2025 |
| Court | Chancery Division |
| Counsel | Mr Tom Smith Kc,Mr Philip Moser Kc,Ms Charlotte Cooke,Mr Andrew Shaw,Mr Hugh Whelan,Attar Kc,Mr Edoardo Lupi,Mr Adam Al-attar Kc,Mr Stephen Robins Kc,Mr Mark Phillips Kc,Mr Tony Singla Kc,Ms Charlotte Thomas,Mr Matthew Abraham,Mr Jamil Mustafa,Ms Imogen Beltrami,Mr Andrew Thornton Kc,Ms Georgina Peters,Mr William Day,Mr Lucas Jones,Ms Niamh Davis |
Approved Judgment: Leech J
Re Thames Water Utilities Holdings Ltd CR-2024-007540
Page 1
CR-2024-007540
Neutral Citation Number: [2025] EWHC 338 (Ch)
IN THE HIGH COURT OF JUSTICE
BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
INSOLVENCY AND COMPANIES LIST (ChD)
Royal Courts of Justice, Rolls Building
Fetter Lane, London, EC4A 1NL
18 February 2025
Before:
MR JUSTICE LEECH
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IN THE MATTER OF THAMES WATER UTILITIES HOLDINGS LIMITED
AND IN THE MATTER OF THE COMPANIES ACT 2006
- - - - - - - - - - - - - - - - - - - - -
MR TOM SMITH KC, MR PHILIP MOSER KC, MS CHARLOTTE COOKE,
MR ANDREW SHAW and MR HUGH WHELAN (instructed by Linklaters LLP)
appeared on behalf of the Applicant Company
MR ADAM AL-ATTAR KC and MR EDOARDO LUPI (instructed by Akin
Gump LLP) appeared on behalf of an ad hoc group of Class A supporting creditors
MR STEPHEN ROBINS KC (instructed by Allen Overy Shearman Sterling LLP)
appeared on behalf of a group of bank supporting creditors
MR MARK PHILLIPS KC, MR TONY SINGLA KC, MS CHARLOTTE
THOMAS, MR MATTHEW ABRAHAM, MR JAMIL MUSTAFA and MS
IMOGEN BELTRAMI (instructed by Quinn Emanuel Urquhart & Sullivan UK
LLP) appeared on behalf of an ad hoc group of Class B opposing creditors
MR ANDREW THORNTON KC and MS GEORGINA PETERS (instructed by
Freshfields LLP) appeared on behalf of Thames Water Limited
MR WILLIAM DAY, MR LUCAS JONES and MS NIAMH DAVIS (instructed
by Marriott Harrison LLP) appeared on behalf of Mr Charlie Maynard MP
Hearing dates: 31 January, 3-7 February 2025
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
APPROVED JUDGMENT
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
I direct that no official shorthand note shall be taken of this Ju dgment and that copies of this
version as handed down may be treated as authentic.
Approved Judgment: Leech J
Re Thames Water Utilities Holdings Ltd CR-2024-007540
Page 2
Table of Contents
I. The Application ................................................................................................... [1]
II. Background ........................................................................................................ [9]
A. The Existing Financial Arrangements .................................................................. [9]
B. The Regulatory Framework ............................................................................... [36]
C. Chronology ......................................................................................................... [62]
III. The Plans ......................................................................................................... [92]
D. The Plan: the terms ........................................................................................... [92]
E. The Plan: the cost ............................................................................................. [111]
F. OfWat’s position ............................................................................................... [121]
G. The B Plan ........................................................................................................ [128]
H. The Reinstated Plan ......................................................................................... [130]
IV. The Issues ...................................................................................................... [131]
I. Jurisdiction......................................................................................................... [136]
J. Discretion .......................................................................................................... [152]
V. The Relevant Alternative ............................................................................... [161]
VI. The No Worse Off Test ............................................................................... [175]
K. The Valuation Issues ........................................................................................ [175]
L. Class A Control Terms ..................................................................................... [197]
VII. Discretion ..................................................................................................... [245]
M. Fairness ............................................................................................................ [245]
N. Blot ................................................................................................................... [265]
VIII. Public interest ............................................................................................ [284]
O. Standing ........................................................................................................... [284]
P. Sanction ............................................................................................................ [290]
IX. Disposal .......................................................................................................... [309]
Approved Judgment: Leech J
Re Thames Water Utilities Holdings Ltd CR-2024-007540
Page 3
Mr Justice Leech:
I. The Application
1. By Claim Form dated 10 December 2024 the Claimant, Thames Water Utilities
Holdings Ltd (the “Plan Company”), applied for an order permitting it to
convene and conduct seven meetings (the “Plan Meetings”) of the Plan
Company’s principal creditors (the “Plan Creditors” or “Creditors”) for the
purpose of considering and, if thought fit, to approve a restructuring plan (the
“Plan”) under Part 26A of the Companies Act 2006 (the “CA 2006”). The Plan
Company also applied for an order to sanction the Plan.
2. The Thames Water group of companies (the “Thames Water Group” or the
“Group”) is the largest provider of water and sewerage services by number of
customers in the UK providing services to 24% of the population. On 19
December 2024 the final determination of OfWat’s price review process was
published (subject to any reference to the Competition and Markets Authority
(the “CMA”)). The Plan Company is unable to give effect to that determination
without putting in place a long-term restructuring plan. However, it will run out
of money before it can do so and, in particular, on 24 March 2025. The parties
described the period in the run-up to that date as the “liquidity runway” and I
will adopt that term.
3. The Plan Company proposes, therefore, to implement an interim solution which
the parties have named the “Interim Platform Transaction” to extend the
liquidity runway for a further two years to provide, so the Plan Company
contends, a stable platform to raise capital and put in place a long-term
restructuring plan. It should be understood, therefore, that the Court has only
been asked to sanction an interim plan on this application. The Interim Platform
Transaction will extend the final maturity dates and scheduled amortisation
payments of all classes of debt by two years and cancel all currently undrawn
commitments under its existing liquidity facilities, Class A Debt and Class B
Debt. The Plan will also result in £1.5 billion of new super senior funding being
injected into the Group with capacity to inject a further £1.5 billion.
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