Thames Water's Strategic Restructuring: A Detailed Overview

Thames Water's Strategic Restructuring Plans

Thames Water Utilities Limited (TWUL) is taking significant steps towards improving its financial situation through a crucial restructuring initiative. This effort is designed to enhance its liquidity and ensure the sustainability of its operations moving forward. The company, alongside Thames Water Utilities Holdings Limited, recently issued a practice statement letter that outlines the proposed restructuring plan under Part 26A of the UK Companies Act 2006.

Understanding the Practice Statement Letter

The practice statement letter, which plays a vital role in this restructuring process, provides comprehensive information intended for Plan Creditors. It explains the potential effects of the restructuring plan and the set next steps for creditors involved. This document is a call to action for creditors, encouraging thorough review to understand better their roles and the restructuring's implications.

Participation and Benefits for Creditors

For credibility and transparency, creditors are encouraged to access the practice statement letter available online, but they need to obtain a password first by reaching out to the Information Agent, Kroll Issuer Services Limited. This ensures that all stakeholders are kept in the loop while maintaining a secure and organized communication channel. The letter can also be examined in person at Kroll's office.

Backing from Major Creditors

As part of this restructuring plan, TWUL has seen impressive engagement, with creditors representing nearly 76% of the total principal amount of debt already signing on to the transaction support agreement (TSA). This strong backing demonstrates the collective confidence amongst creditors in the proposed changes and the commitment to supporting TWUL's path forward.

Incentives for Participating Creditors

Creditors who officially join the TSA by the designated record date stand to benefit from a non-cash consent fee, which is set at 0.50%. This fee is designed to be beneficially capitalized within its respective position in the payment waterfall, an encouraging component for creditor participation in this pivotal phase for TWUL.

Contacting the Lock-Up Agent

Questions regarding how to accede to the TSA or acquire a copy of the practice statement letter can be directed to the Lock-Up Agent. TWUL has also ensured that creditors have access to information about existing contacts and their advisors to facilitate a smooth communication process and enhance engagement.

Investor and Media Relations

For those seeking further information regarding the restructuring and company operations, TWUL has provided specific contacts for both investor and media relations. Frederick Maroudas is designated for investor inquiries while Suvra Jans is available for media-related questions, ensuring that interested parties have direct access to key information sources.

Conclusion

This restructuring marks a vital step for Thames Water, aligning its financial health with its operational goals. As this process unfolds, the active involvement of creditors and clear communication will be essential for achieving a successful outcome.

Frequently Asked Questions

What is the purpose of the restructuring plan for Thames Water?

The restructuring plan aims to enhance liquidity and ensure the financial sustainability of Thames Water in the long term.

How can creditors access the practice statement letter?

Creditors can obtain access to the letter by requesting a password from Kroll Issuer Services Limited.

What incentives are available for creditors participating in the TSA?

Creditors who join the TSA by the designated record date can receive a 0.50% non-cash consent fee that is capitalized in the payment structure.

Who should creditors contact for questions about the restructuring?

Creditors can contact the Lock-Up Agent for questions regarding the TSA or to request the practice statement letter.

Who are the main contacts for investor and media inquiries at Thames Water?

Frederick Maroudas handles investor inquiries, while Suvra Jans is responsible for media questions.

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