About Western Water Company

Western Water Company’s origins go back over 100 years ago in the goldfields of Yuba County, California. Over time, the focus on gold mining shifted to another of the company’s valuable resources: the abundant water and water rights associated with the land. Today, Western Water holds significant senior water rights in California’s Central Valley and Colorado’s Denver Basin.

Bankruptcy Proceedings

On May 24, 2005, Western Water Company sought protection in bankruptcy for the purpose of reorganizing the Company under chapter 11 of the U.S. Bankruptcy Code.  The case (Case Number 05-42839) is pending before the U.S. Bankruptcy Court, Northern District of California, Oakland Division.  It is assigned to Judge Leslie Tchaikovsky.  The Company continues to operate its business and manage its affairs as debtor-in-possession pursuant to provisions of the Bankruptcy Code.

Pursuant to authority granted by the Bankruptcy Court, the Company sold its Cherry Creek Project in the South Metro Area around Denver, Colorado.  The Project was sold to the newly-formed Cherry Creek Project Water Authority, an intergovernmental entity formed by four local water districts.  The transaction closed on November 17, 2005.

Proceeds of the sale of the Cherry Creek Project are sufficient to allow the Company to pay all of its creditors in full and to reorganize the Company.  The Company filed a Disclosure Statement and Plan of Reorganization, both dated December 29, 2005.  The Disclosure Statement and Plan of Reorganization may be viewed and downloaded from this website.

The Bankruptcy Court has set February 6, 2006 as the date for a hearing to consider final approval of the Disclosure Statement and confirmation of the Plan of Reorganization. 

Assuming confirmation of the Plan of Reorganization, the Company intends to implement the Plan promptly by paying all of its creditors in full, canceling its outstanding common and preferred stock, reorganizing the Company as a non-public Delaware corporation, issuing a single class of common stock in the reorganized Company, and pursuing a revised business strategy, primarily in California.

Throughout the bankruptcy process, the Company has sustained its business operations, met its “normal course” financial and operating obligations, and prepared for reorganization. 

Meeting Today’s Needs

Water marketing is the sale, exchange or lease of water from one user to another. Water transfers involve the movement of water from willing sellers to buyers in water short areas.

Through conservation efforts, farmers and others who own water rights are able to sell their extra water to others in need of additional supplies of water, often at a lower cost than from traditional sources. Such transfers benefit those who conserve water as well as those areas -- both rural and urban -- that need additional supplies. Water marketing also creates competition with water wholesalers, which ultimately benefits water consumers. Existing safeguards ensure that water transfers don’t injure other water rights holders or unreasonably affect third parties.

Growth For Future Demand

In recent years, water transfers have emerged as one of the most promising ways to meet California’s growing need for water, and one of the most effective ways to encourage conservation and maximize existing resources. Water marketing is recognized by the state and federal governments as one of many strategies to meet increasing demand for additional water supplies.