Thames Water has had its £3bn restructuring plan approved by the High Court and avoided the prospect of falling under the Government’s control.

The water company was set to run out of finances by the end of March and would have likely been placed into temporary nationalisation to keep its services running.

Following the court decision, however, Thames Water is now free to go ahead with the restructuring plan it announced in October last year, which includes a request of up to £3bn worth of new financing from its creditors, as part of a wider move to extend its liquidity runway.

Thames Water said the £3bn in emergency funding, which includes an initial tranche of £1.5bn, will allow it to complete a restructuring of its debts and attract a cash injection from prospective new investors.

“We are pleased the Court sanctioned the company plan,” said Thames Water CEO, Chris Weston.

“This is good news for our customers, puts our business on a firmer financial footing and enables us to continue to invest in our network and deliver critical infrastructure upgrades for our customers and the environment. Importantly, this decision will support the delivery of our turnaround which is underway.”

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