Thames Water Creditors Challenge £3 Billion Rescue Loan

  • Deal opposed in court by the utility firm’s junior creditors
  • Thames says it could enter special administration by February
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A £3 billion ($3.8 billion) planned rescue loan to Thames Water would hold the company “to ransom” and hand control to senior creditors, lawyers representing rival lenders told a London judge on Tuesday.

The heavily-indebted utility requires emergency funding but the restructuring proposal is facing opposition from junior lenders, who have a different deal they say is more affordable. Thames is the biggest provider of water and sewerage services in the UK, supplying 16 million customers across England.