LONDON, U.K.: A judge has approved an emergency financial plan to prevent Britain's largest water company, Thames Water, from collapsing, avoiding a potential government takeover.

The High Court ruling allows Thames Water to secure 3 billion pounds ($3.8 billion) in rescue loans, ensuring the company remains operational as it faces a severe cash shortfall. Without the funding, the company was projected to run out of money the next month, which could have forced temporary government control.

Justice Thomas Leech ruled that restructuring was in the public's best interest, stating, "There is a public policy in favor of rescuing the Thames Water Group and giving the market a chance to agree to a permanent restructuring plan before the government is forced to fund a special administrator."

While the decision prevents immediate insolvency, Leech granted permission to appeal to a smaller group of creditors and a lawmaker who had been pushing for a government takeover.

Thames Water Chairman Adrian Montague welcomed the ruling, calling it a "significant milestone" in stabilizing the company's finances. However, critics argue that the company's financial troubles stem from years of mismanagement, excessive executive pay, and shareholder dividends while failing to invest in infrastructure.

Public frustration with Thames Water has been mounting, particularly over sewage spills in rivers and coastal areas. "This national scandal is a disaster for Thames Water billpayers and the environment," said Charles Watson, chairman of environmental group River Action. "The decision saddles customers with billions in junk-rated debt while executives, investors, and shareholders escape responsibility."

Thames Water claims that regulators kept consumer bills too low for too long, preventing necessary infrastructure improvements. In December, industry regulator Ofwat approved a 35 percent increase in Thames Water's charges over the next five years. The company argued that a 53 percent rise was needed to attract investors and fund crucial projects.

Leech acknowledged concerns about the high cost of the bailout, including an interest rate of 9.75 percent, stating, "The costs of finance and adviser fees in the present case are very high. Indeed, they might be described as eye-watering."

Despite the judge's approval, critics remain skeptical. Liberal Democrat lawmaker Charlie Maynard, who had pushed for a government takeover, said he plans to appeal. "This restructuring is simply throwing good money after bad," Maynard said. "The money from our bills which is being spent on interest repayments is desperately needed to repair water infrastructure, improve customer service, and clean up our rivers."