(Reuters) - Britain's Thames Water said on Friday it was proposing, as a precautionary measure, to waive potential defaults that might arise from a group of Class B creditors seeking a parallel
Thames Water Waives Default Amid Debt Restructuring Plans
(Reuters) - Britain's Thames Water said on Friday it was proposing, as a precautionary measure, to waive potential defaults that might arise from a group of Class B creditors seeking a parallel restructuring plan.
Earlier this week, the troubled utility company appeared before a London court, seeking approval for a crucial 3 billion pounds ($3.77 billion) financial rescue package, as part of its own restructuring plan, one of several hurdles it must clear to avoid nationalisation.
Thames, burdened with 17 billion pounds worth of debt, has secured support from 75% of its senior (Class A) creditors for its plan. However, a group of lower-ranked Class B creditors remains opposed.
They are pursuing an alternative restructuring plan to extend the company's liquidity runway, potentially setting up a legal battle early next year.
Thames Water said the proposal has been launched "as a matter of caution and in order to provide as much stability to Thames Water Utilities Limited financing group as possible."
A spokesperson for the Class B creditors said, "We remain hopeful that the Class A creditors will support this process given it is in the company’s best interests as the B plan offers a much more affordable and less restrictive option."
($1 = 0.7966 pounds)
(Reporting by Yadarisa Shabong, Prerna Bedi in Bengaluru and Anousha Sakoui in London; Editing by Tasim Zahid)
