Thames Water Utilities
Limited
10 January 2025
Thames Water Utilities
Limited announces
results of STID Proposal
Thames Water Utilities Limited
("TWUL")
announces today that its STID Proposal dated 20
December 2024 (the "STID
Proposal") regarding the Waiver described therein has been
approved.
The waiver has been sought solely
for the purposes of continuing to facilitate the Liquidity
Extension Transaction and the Company RP and to mitigate any impact
of actions of the Relevant Class B Creditors or any other creditor
group.
Thames Water said: "The board and
leadership team remain focused on implementing the company plan,
stabilising the business and seeking the best financial and
operational outcome for customers, the environment, UK taxpayers
and the UK economy."
Terms used but not otherwise defined
have the meaning given to them in the STID Proposal.
Background
TWUL previously announced a consent process for a transaction
support agreement ("TSA")
in connection with implementing the liquidity extension transaction
(the "Liquidity Extension
Transaction").
The Liquidity Extension Transaction
is to be implemented by a restructuring plan proposed by Thames
Water Utilities Holdings Limited (the "Plan Company" or "TWUHL") pursuant to Part 26A of the
Companies Act 2006 (the "Company RP"). Convening of creditor meetings in
respect of Company Plan was approved by Court hearing on 17
December 2024.
TWUL was made aware that certain
Class B Creditors (the "Relevant
Class B Creditors") were seeking to launch a parallel
restructuring plan to implement their alternative liquidity
extension transaction. TWUL launched the STID Proposal in order to
ensure that no Default or Event of Default arose from a Class B RP
or Other Creditor RP while the Company RP (which has the support of
circa 89 per cent. of Secured Creditors of the TWU Financing Group
as of 7 January 2025) is being progressed.
Approval of STID Proposal
TWUL announces that the Security
Trustee has received the required votes in favour of the Waiver
from the Majority Creditors and accordingly, the Waiver under the
STID Proposal has been approved.
The STID Proposal shall apply from
the date on which the Security Trustee executes the Waiver Letter,
but the continued application of the Waiver is subject to the
conditions specified below:
(1) that the waivers
granted under the 25 October STID Proposal continue to
apply;
(2) that the Company RP is
sanctioned on or before 11 February 2025 (subject to any agreed
extension);
(3) any applicable appeal
period in relation to the Company RP has expired on or before 18
February 2025 (subject to any agreed extension), and no appeal is
subsisting at that time; and
(4) if the Company RP is
sanctioned, the order sanctioning the Company RP has not
subsequently been overturned on a successful appeal (subject to any
agreed waiver confirmation in respect of this limb (4)).
each a "Creditor
Waiver
Condition".
TWUL confirms that Creditor Waiver
Condition (1) remains satisfied. TWUL further confirms that it will
notify the Security Trustee when other Creditor Waiver Condition is
satisfied.
For the avoidance of doubt this
Waiver should not be taken as TWUL's or TWUHL's approval or
authorisation of the Class B RP or any Other Creditor
RP.
Creditors are encouraged to accede
to the TSA by the record date for the Company RP to access a
non-cash consent fee of 0.50% (capitalised in its respective
position in the waterfall). Creditors should contact the Lock-Up
Agent (as defined in the TSA) at thameswater@is.kroll.com with
questions on how to accede to the TSA.
For further information
Investor enquiries
Frederick Maroudas - Director of
Corporate Finance
debt.investorrelations@thameswater.co.uk
Media enquiries
Suvra Jans - Head of Media
Relations
suvra.jans@thameswater.co.uk
M: 07747 640 810
This notice is given by:
THAMES WATER UTILITIES LIMITED
10 January 2025
Legal Entity Identifier
Numbers:
Thames Water Utilities Limited:
213800JKM5UQHFJOTZ25
Thames Water Utilities Finance Plc:
213800SKZTSE2L1BII69
