Thames Water, Britain's biggest water supplier, faced another court battle on Tuesday as a group of its junior creditors started a legal challenge over a 3 billion pound ($3.9 billion) debt lifeline necessary to keep it afloat.

Thames Water restructuring plan should not have been approved, court told - A group of Thames Water’s creditors and others are appealing against a decision by the High Court to sanction a plan to keep the company afloat.

Thames Water is preparing for the possibility that it may be pushed into special administration following an appeal in a London court next week, according to people familiar with the matter.

A £3bn emergency loan that temporarily averted Thames Water’s special administration should not have been approved, a court has been told. The Court of Appeal on Tuesday heard the terms of the agreement were “mispriced and inappropriate.

Emergency funding that would allow Thames Water access to as much as £3 billion ($3.9 billion) and stave off temporary nationalization is being challenged at a London court this week.