Appeal court rules in favour of £3bn bailout for Thames Water. Judges dismiss appeal from campaigners who argued ‘eye-watering’ cost of loan was not in public interest.
The court of appeal has upheld Thames Water’s £3bn emergency bailout loan, in a decision published on Monday.
Appeal court judges dismissed an appeal from environmental campaigners and a small group of Thames creditors after a three-day hearing last week.
Both groups argued that the “eye-watering” costs of the £3bn emergency loan, at interest rates of 9.75%, were not in the public interest. They said putting the ailing water company, which has debts of £19bn, into temporary nationalisation under a special administration regime would be more cost effective.
The decision in Thames’s favour means the company can continue operating long enough to attempt a restructuring of debts and the gathering of new investment.
Cat Hobbs, founder and director of the British Blue Community ‘We Own It’ comments:
Absolutely gutted to hear the Thames Water bailout is going ahead Millions of “customers” forced to pay £250 extra for ever expanding debt pile There has never been a better time for the government to step in and introduce PERMANENT PUBLIC OWNERSHIP
