An appeal against a £3bn rescue package for Thames Water has been dismissed following a three-day hearing last week.

The Court of Appeal’s ruling on Monday averts the possibility of the UK’s biggest water supplier being placed into special administration (SAR).

But critics argue the £3bn emergency loan from a group of Class A creditors is only a short-term fix for the troubles at Thames Water and a SAR is in the public interest.

Thames Water has amassed debts of more than £19bn and is under pressure to upgrade creaking infrastructure and reduce sewage leaks.

The full details of the court’s reasons for the dismissal are set to be published in due course. Additionally, all other consequential matters are paused until the full judgment is handed down.

A group of Thames Water’s secondary creditors and the Liberal Democrat MP, Charlie Maynard, appealed against the decision at a three-day hearing last week.

Andrew Thornton KC previously told the court the terms of the agreement were “mispriced and inappropriate” and were “designed by senior lenders for the benefit of senior lenders.”

Thames Water’s parent company, TWUH, and its Class A creditors had challenged the appeal.

Responding to the judgement, Thames Water chief executive Chris Weston said: “We are pleased that the Court of Appeal has today decisively refused the appeals and upheld the strong High Court decision to sanction the Company Plan.