Troubled Thames Water has warned that by May 2025 they will have run out of money as debt ridden company is struggling to secure funding.
A High Court judge has approved Thames Water with an emergency £3.3 billion restructuring plan over the next five years to keep the troubled company running, otherwise it will go bust in March.
Thames Water Utilities Holdings Limited (TWUH), the parent company of Thames Water Group (TWG), is the largest water company in England and has some 16 million customers.
This month Justice Leech hears over several days arguments to restructure the business to provide a loan of £3 billion with an interest rate of 9.75%.
TWUH’s solicitors said that unless the High Court grants the company a restructuring plan then Thames Water will enter into Special Administration (SAR).
On Tuesday Justice Leech rules the “relevant alternative” to the company plan being approved was SAR, he said, “After taking into account the public interest in ensuring the uninterrupted provision of vital public services, I nevertheless exercise my discretion to sanction the plan.”
The judge was very critical of the high fees people are being charged as they are struggling to pay their bills as the restructuring costs are an “eye-watering” £800 million.
The Judge said, “Customers and residents who are struggling with their bills will be horrified at these costs and mystified how the Thames Water Group has been able to fund them or why it has agreed to do so.”
