Court of Appeal upholds Thames Water's Part 26A restructuring plan
Challenges by all appellants dismissed before the Court of Appeal
Following a decision of the Court of Appeal, Thames Water's Part 26A restructuring plan has been upheld and the challenges by all appellants have been dismissed.
In our publication, we have highlighted some key takeaways from the Court of Appeal's judgment, including:
- the CoA clarified that there is no "hard edged rule" that out of the money creditors can always fairly be excluded from the "restructuring surplus" – their treatment will need to feature (to some extent) in the Court's horizontal comparison and fairness exercise;
- the"restructuring surplus" or the "benefit preserved or generated by the plan" can be intangible, including (as in this case) avoiding insolvency and bridging to a rescue plan / equity raise; and
- the CoA was satisfied that the terms of the super senior financing and rights granted to Class A creditors under the plan were fair and appropriate; valuation dispute was moot.
Read more about the Court of Appeal's decision and background to the Thames Water Plan by clicking the button below.
