(Reuters) -Thames Water said on Wednesday that the restructuring plan proposed by the struggling utility company to extend its liquidity runway was approved by creditors holding over 90% of secured debt.
The plan provides up to 3 billion pounds ($3.70 billion) in new funding, along with access to cash reserves and debt extensions, crucial for the British firm burdened with 17 billion pounds in debt.
“We believe it is the only implementable solution to enable the equity investment required to provide stability and certainty in the longer term and will not impact customer bills”, Julian Gething, chief restructuring officer, said.
However, 84.5% of the lower-ranked Class B creditors voted against the plan.
They filed an objection earlier this month and proposed an alternative restructuring plan, claiming it would provide Britain’s biggest water supplier with significantly more committed funding on cheaper and more flexible terms.
The court hearing to consider the company’s restructuring plan is set for Feb. 3-6, and the one proposed by the Class B creditors will be independently evaluated at a different hearing on Jan. 20.
($1 = 0.8117 pounds)
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Vijay Kishore and Alan Barona)
