Thames Water update as creditors challenge restructuring

Thames water continues to face financial turmoil as creditors launch challenge to restructuring.

Transcript

00:00So, what is the latest with long-time troubled Thames Water? A few weeks ago I discussed

00:08how the water company, which is the largest in Britain, was given the green light by a

00:14High Court judge to restructure and receive a £3bn loan after accumulating around £19bn

00:23in debt. I'll add that decision came just weeks before it was due to run out of cash

00:29and potentially face government ownership. This was known as the so-called Company Plan.

00:38This plan was opposed by a group of creditors who argued that the 9.75% interest rate on

00:46the loan was too costly. Now, those same creditors have begun challenging that High Court decision

00:54as their appeal started on Tuesday. Thames Water has also faced public outrage recently

01:02after it approached the competition regulator to allow the company to charge customers even

01:09more money after being granted a rise in consumer bills over the next five years by water regulator

01:17Ofwat. It has also been revealed the company actively tried to defend paying large bonuses

01:25to senior executives while it has seen worsening performance on sewage pollution. Thames Water

01:33even threatens to increase the salaries of its top directors if Ofwat follows through

01:39on plans to limit bonuses, bonus payments, to directors.