Thames Water Utilities Holdings, Re

Thames Water Utilities Holdings, Re

The court granted the Plan Company's application to convene seven class meetings of Plan Creditors, holding that the proposed classes are properly constituted based on differences in rights under the debt waterfall and make-whole provisions, that all statutory and procedural requirements for notice and jurisdiction are satisfied, and that no jurisdictional or procedural obstacles exist to convening the meetings. The court found that the statutory conditions for a Part 26A restructuring plan are met and that the differences in rights among creditors do not require further fracturing of classes beyond those proposed.

Parties
Applicant Plan Company: Thames Water Utilities Holdings Ltd; Class a Creditors: Group of Class A Plan Creditors; Class B Creditors: Group of Class B Plan Creditors; Creditors: Lloyds Bank Corporate Markets and BNP Paribas; Creditors/group Companies: Thames Water Limited and certain creditors of Kemble Water Finance Limited and Thames Water (Kemble) Finance Plc
Jurisdiction
England and Wales
Judgment Date
20 December 2024
Procedural Posture
Restructuring Plan Application (companies Act 2006, Part 26 A) / Convening Hearing for Directions and Class Constitution
Outcome
Application granted
Legal Topics
Restructuring Plan, Class Constitution, Cross Class Cram Down, Jurisdiction Under Companies Act 2006 Part 26 a, Scheme of Arrangement, Creditor Rights, Debt Waterfall, Administration Comparator
Insolvency Law Company Law Banking and Finance Restructuring Plan Class Constitution Cross Class Cram Down Jurisdiction Under Companies Act 2006 Part 26 a Scheme of Arrangement +3 more

Case Brief

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Parties

Thames Water Utilities Holdings Ltd

Applicant Plan Company

Group of Class A Plan Creditors

Class a Creditors

Group of Class B Plan Creditors

Class B Creditors

Lloyds Bank Corporate Markets and BNP Paribas

Creditors

Thames Water Limited and certain creditors of Kemble Water Finance Limited and Thames Water (Kemble) Finance Plc

Creditors/group Companies

Procedural Posture

Restructuring Plan Application (companies Act 2006, Part 26 A) / Convening Hearing for Directions and Class Constitution

Legal Issues

  1. 1 Whether the court should grant directions to convene meetings of Plan Creditors to consider a restructuring plan under Part 26A of the Companies Act 2006
  2. 2 Whether the proposed creditor classes are properly constituted for the purposes of the Plan
  3. 3 Whether the court has jurisdiction to sanction the Plan at the sanction hearing

Ratio Decidendi

The court granted the Plan Company's application to convene seven class meetings of Plan Creditors, holding that the proposed classes are properly constituted based on differences in rights under the debt waterfall and make-whole provisions, that all statutory and procedural requirements for notice and jurisdiction are satisfied, and that no jurisdictional or procedural obstacles exist to convening the meetings. The court found that the statutory conditions for a Part 26A restructuring plan are met and that the differences in rights among creditors do not require further fracturing of classes beyond those proposed.

Court Disposition

Application granted

Orders

  • Directions given for convening seven class meetings of Plan Creditors to consider the proposed restructuring plan under Part 26A of the Companies Act 2006
  • Approval of class constitution as proposed by the Plan Company