Thames Water seeks court approval for emergency bailout
Thames Water is seeking High Court approval today for a £3bn emergency loan to keep the troubled utility afloat, in a crucial 48-hours for the company and the industry.
At a hearing at the Royal Courts of Justice before Mr Justice Trower on Tuesday, Thames will present the loan as the first stage of a restructuring plan it says is necessary to avoid running out of cash in the spring.
Two days later on Thursday, regulator Ofwat will reveal its “final determination” on water company five-year business plans and how much they will be permitted to increase consumer bills and what return they can offer investors.
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Why are water bills increasing?
It is a crucial moment not just for Thames but for the entire privatised water system, with companies facing increased borrowing costs and pressure to address sewage outflows, climate change and population growth.
Under the restructuring plan, Thames Water’s A-class bondholders will provide a £3bn loan over two and a half years at a rate of 9.75%. The loan would have “super-senior” status, putting it at the front of the queue of the company’s creditors in the event of a default.
The class A bondholders are thought to control up to £12bn of the almost £17bn of net debt at the regulated company level.
Court approval is required as the terms of the loan effectively breach Thames Water’s agreements with its existing creditors by pushing their claims lower down the list of seniority.
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August: Water firms face record fines
Should the judge approve the first step, final ratification will come after a meeting of shareholders next month.
Read more: Five charts that explain why water bills are to spike
The move, which requires the support of 75% of creditors, is expected to be opposed by a group of Class B bondholders, holding around £1bn of debt, who say they can offer a similar loan on less expensive terms to the company.
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Sept: Thames Water boss can ‘save’ company
Campaigners are expected to gather at the Royal Courts of Justice to oppose the plan, saying the loan will cost £300m a year in interest and fees, and cost Thames Water customers £250 a year.
The company is expected to tell the judge that it has the support of banks that provide financial derivatives alongside the A class creditors, and that it is the first step in a restructuring intended to attract fresh equity.
Under relatively new legislation introduced in 2020, a judge can approve a restructuring plan if it has the support of 75% of all types of creditor, but if not they can consider a “relevant alternative” that leaves none of them worse off.
Thames Water is likely to argue that the alternative to its restructuring plan would be the company falling into the state-managed Special Administration Regime, which would likely see creditors lose money.
A 53-year-old man has been charged after a car was driven into a crowd at Liverpool FC’s trophy parade.
Paul Doyle, from the West Derby area of Liverpool, has been charged with seven offences, Merseyside Police said.
The businessman, who is a father-of-three, is accused of two counts of unlawful and malicious wounding with intent to cause grievous bodily harm, and two counts of causing unlawful and malicious grievous bodily harm with intent to cause grievous bodily harm.
Paul Doyle
Doyle is also accused of two counts of attempted unlawful and malicious grievous bodily harm with intent to cause grievous bodily harm, and one count of dangerous driving.
He is due to appear before Liverpool Magistrates Court on Friday.
The charges relate to six people, including two children. A wounding charge and an attempted grievous bodily harm charge relate to a child.
A police car was outside Doyle’s four-bedroom detached family home in the West Derby area on Thursday morning.
According to his social media, he has travelled extensively including Japan, Fiji, India and Australia. Doyle has posted pictures of himself competing in triathlons, and climbing Mount Kilimanjaro.
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New Liverpool incident footage
Thousands of fans were gathered in Liverpool city centre on Monday to celebrate the Premier League champions’ title win when a car struck a crowd on Water Street.
Police said a total of 79 people were injured in the incident, with the youngest aged nine, and the oldest being a 78-year-old.
Seven people remain in hospital in a stable condition.
Forensic officers at the scene in Water Street. Pic: PA
‘Huge volume of evidence’
Chief crown prosecutor for the CPS Mersey-Cheshire, Sarah Hammond, told a news conference on Thursday that the investigation was at an early stage and a “huge volume of evidence” was being reviewed.
“This includes multiple pieces of video footage and numerous witness statements. It is important to ensure that every victim gets the justice they deserve.
“The charges will be kept under review as the investigation progresses.”
Police ‘working tirelessly’
Also at the briefing where the charges were announced was Assistant Chief Constable of Merseyside Police, Jenny Sims, who said: “I fully understand how this incident has left us all shocked and saddened, and I know many will continue to have concerns and questions.
“Our detectives are working tirelessly, with diligence and professionalism, to seek the answer to all of those questions. When we are able to, we will provide further information.”
The youngest victim injured in the Liverpool parade crash on Monday is nine years old, police have said.
They added that the oldest is 78, with all 79 people injured understood to be British. Seven remain in hospital in a stable condition.
Merseyside Police declined to say what drug the 53-year-old man arrested over the incident is alleged to have taken.
“We wouldn’t go into this detail at this stage of the investigation,” the force said.
Police at the scene in Liverpool. Pic: AP
Forensic officers in Water Street. Pic: PA
Police are still questioning the driver and were granted further time to do so on Wednesday.
Officers have until Thursday evening to question the man from West Derby.
He is in custody on suspicion of attempted murder, dangerous driving and drug driving.
Police believe the car which struck pedestrians was able to follow an ambulance crew attending to someone suffering a heart attack after a road block was temporarily lifted.
Hundreds of thousands of Liverpool fans had turned out to celebrate their team’s Premier League title when the incident unfolded on Water Street just after 6pm on Monday.
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‘My boy in his pram, got bounced’
‘The best day of my life turned into worst’
Sky News interviewed a lifelong Liverpool fan who said his five-month-old son was “bounced” 15ft (4.6m) in his pram after they were hit by the vehicle.
The child was not counted in the police’s injury tally.
Daniel Eveson, 36, also said his partner had been driven over.
“The best day of my life turned into [the] worst,” Mr Eveson said.
He added: “Me and my partner were flat on the roof, on the bonnet… we were just both trying to hold on for dear life with Ted next to us.
“And my partner went under the wheels of the car, of the front of the car, and it rolled over her leg, and I just bounced off to the side, but my boy and his pram got bounced totally in the opposite direction – about 15ft down the road.”
Read more:
How the parade crash unfolded
Police given more time to question Liverpool suspect
Why police released ‘unprecedented’ details
Prime Minister Sir Keir Starmer travelled to Liverpool to meet with police chiefs and the local metro mayor.
He said he was being kept informed of developments, adding: “The scenes on Monday were just awful, to see how incredible joy at an amazing achievement turned to horror in a moment.”
Messages of support have been sent to the people of Liverpool, including from the King who said: “I know that the strength of community spirit for which your city is renowned will be a comfort and support to those in need.”
The Prince and Princess of Wales said they were “deeply saddened” by the incident.
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