British water provider Thames Water has won the High Court backing for a £3bn emergency debt package just weeks before it was set to run out of cash.
The debt-laden private utility group will receive an initial tranche of £1.5bn upfront in cash that is expected to give it enough money until September. The remaining £1.5bn will be given over two separate tranches.
Thames Water, which carries around £19bn of debt, has been close to collapse over recent years and is at risk of being renationalised if it could not get its financial difficulties under control.
The company was set to run out of cash on 24 March.
The emergency loan by Class A creditors, approved on Tuesday by High Court judge Justice Leech, had been criticised for its lofty 9.75% interest rate, with another loan was offered at a cheaper 8% rate but by Class B creditors.
However, Justice Leech said in a statement: "After taking into account the public interest in ensuring the uninterrupted provision of vital public services, I nevertheless exercise my discretion to sanction the plan."
Commenting on the decision, Thames Water's chief executive Chris Weston said: "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."