Thames Water's rescue plan approved by High Court - saving it from temporary nationalisation

Thames Water has received a crucial boost from the High Court, which approved its restructuring plans, averting the risk of temporary nationalisation.

The UK's largest water supplier was on the brink of running out of funds by 24 March without securing a £3bn loan from creditors, while grappling with debts exceeding £19bn, as reported by City AM.

Failure to obtain this financial support would have likely resulted in the company entering a special administrative regime (SAR).

Chris Weston, Thames Water's chief executive, expressed relief and optimism following the court's decision: "This is good news for our customers, puts our business on a firmer financial footing and enables us to continue to invest in our network and deliver critical infrastructure upgrades for our customers and the environment," he said in a statement to the markets on Monday.

He also emphasised the importance of the ruling for the company's ongoing recovery efforts: "Importantly, this decision will support the delivery of our turnaround which is underway."

The High Court's approval means that Thames Water will receive up to £3bn in "super senior" funding. This includes an initial tranche of £1.5bn to extend liquidity until September 2025, followed by two further tranches of £750m each, ensuring the company's operations until May 2025.

Critics, however, have suggested that nationalising Thames Water could have allowed for a restructuring of its unsustainable finances with public interest in mind.

The util