The legal challenge to the High Court’s recent approval of the A creditors’ financial restructuring proposals for Thames Water will be heard in court from 11-15 March.
There have been no definitive alternative proposals published, neither by the B creditors nor on the cost to taxpayers of putting Thames into special administration as favoured by the other challenger, Charlie Maynard MP.
Given the cashflow constraints at Thames, it is hard to see how the appeal claims would be upheld. The original approval was granted on the basis of public interest. The Government has made no secret of its preference for a market solution for Thames’ over-indebtedness. Nevertheless, according to reports, both Thames Water management and the Treasury are preparing for the possibility that the appeal may be successful – potentially necessitating the reversal of financial restructuring preparations already in progress, and forcing Thames into special administration.
Comments