Clifford Chance

English court approves Thames Water's interim restructuring plan

20 February 2025

On 18 February, the English court approved the interim restructuring plan proposed by Thames Water and supported by the Class A creditors (the "Plan"). The purpose of this interim restructuring plan is to extend Thames Water's liquidity runway by a further two years to provide it with a sufficiently stable platform to raise further capital in order to implement an adequate longer-term restructuring plan ("RP2").

The Plan faced significant opposition from its Class B creditors, subordinated creditor (Thames Water Ltd, of which the Plan Company is a wholly owned direct subsidiary), as well as Charlie Maynard MP who represented the public interest grounds. The court engaged its "cross class cram down" powers to bind the Class B creditors and subordinated creditor to the Plan notwithstanding their dissent.

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