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The Times Water faced an increasing opposition in its attempt to win the court’s approval of a expensive loan of 3 billion pounds on Monday after the judge agreed to hear the “public interest” objections from environmental activists and another group of creditors who sought to prevent the plan.
A group of bond holders and lenders represented by the Times Water Limited company – the court documents that oppose emergency financing for the first time. They argued that the “ransom conditions” on financing would allow lenders to conduct a “handsome return” on a “risk -free” deal, which would give them “effective control” of any restructuring in the future.
The intervention came at the beginning of a four -day crowded hearing, as it seeks the largest water benefit in Britain to obtain approval to obtain up to 3 billion pounds in loans from the so -called first -class bond holders, which includes the United States of hedge boxes such as Elliott Management, to avoid an imminent critical crisis.
The proposed loan holds the annual interest rate of 9.75 percent, in addition to more fees and difficult conditions that critics argue that lenders will control the company.
On Monday, the London Supreme Court allowed Charlie Mainard, the liberal Democrats who represent environmental activists in the Oxfordshire district in Whitney, to talk about “public interest and consumer interest” in looking at the proposal to restructure the Times.
In the documents submitted to the court, Mainard argued that the Times Water restructuring plan was a “poor and short -term solution” that is exacerbated instead of alleviating the Dones Debt Themes “episode.
Without the loan, the Times Water says it will run out on March 24 and are at risk of violating the government's special management system, a form of temporary promotion. This process will allow services to continue to operate while freezing debt before the potential restructuring and selling business, or full nationalization.
The loan proposal has increased bitter dispute between the company and the low -category bonds, who claim that the tool has not considered its competitive display properly, which they say at a lower cost and less restricted.
These BC lenders, who may face almost close losses if the proposed restructuring of the company continues, has argued that they will happen better under a special administration compared to the company's plan.
They argued in the written requests to the court that the loan planned from the Category A “A.” Mechanics in its folds, which was a model for “an aggressive loan strategy adopted by the stalled hedge funds.”
Themes Water said that the loan is a necessary bridge for a wider restructuring, giving it time to raise the shares from new investors and re -negotiate its debts.
Mainard argued in his written introduction that the Class A loan provides a bridge anywhere “and” the best and appropriate course will be a special management.
The judgment is not expected to end for at least a week after the session ended on Thursday.
