LONDON - Thames Water Utilities Limited (TWUL) has initiated a consent process for a transaction support agreement (TSA) to extend its liquidity, as part of a restructuring plan under the UK Companies Act. The company announced today that over 75% of various creditor classes have acceded to the TSA, indicating significant support for the liquidity extension transaction outlined on 17 December 2024.
The move comes as an alternative liquidity solution proposed by certain Class B Creditors is also being considered. In response, TWUL launched a STID Proposal today, seeking waivers to prevent any potential defaults in connection with the initiation of this alternative restructuring plan.
The STID Proposal stipulates a series of conditions, including the continuation of waivers from a previous proposal dated 25 October 2024, the sanctioning of the company's restructuring plan by 11 February 2025, and the expiration of any appeal periods by 18 February 2025 without any subsisting appeals.
TWUL's initiative aims to provide stability to its financing structure as it moves forward with the supported restructuring plan. The company emphasized that the waiver sought through the STID Proposal should not be interpreted as an endorsement of the Class B or any other creditor restructuring plan. Instead, it is a strategic move to facilitate the ongoing liquidity extension transaction and mitigate any impact from actions taken by the relevant Class B Creditors or other creditor groups.
The company has made the STID Proposal available on its investor relations website, encouraging stakeholders to review the details and seek independent legal and financial advice if necessary. No bondholder meetings are scheduled regarding the STID Proposal, and qualifying Class A Debt Providers will be contacted through their representatives for voting purposes.
This step by TWUL is part of its broader efforts to navigate financial challenges and ensure operational continuity. The company's approach reflects its commitment to engaging with its creditors transparently and constructively during this critical process.
The information is based on a press release statement from Thames Water Utilities Limited.
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