Thames Water Seeks £2.4bn Lifeline as Cash Runs Low
The utility says it needs fresh creditor funding to avoid running out of cash before a longer-term debt and recapitalisation deal is ready.
Key takeaways
- Thames Water has asked creditors for another £2.4bn in short-term funding.
- The company says it could run out of cash by the end of 2026 or early 2027 without more support.
- Creditors are expected to vote later this month on a proposed rescue plan.
Thames Water has asked creditors for another £2.4bn, saying it could run out of cash by the end of 2026 or early 2027 without fresh support. The company said it does not expect to complete a longer-term recapitalisation before then.
The additional funding would extend the company’s liquidity into autumn 2027, Thames Water said, and allow it to continue its capital programme. It has already drawn £2.65bn from a £3bn creditor lifeline provided in February last year.
Creditors have proposed a rescue plan that would involve writing off £9.6bn in loans. The proposal depends on Ofwat agreeing to let Thames Water pay set penalties several years upfront, a prospect that has proved politically difficult for the Labour government.
Thames Water serves 16 million customers in London and the Thames Valley. Its debt pile is about £20bn, and its shareholders have walked away, leaving creditors in effective control while negotiations continue.
The company said it was working with stakeholders on a market-led solution. Creditors are expected to vote on their proposals later this month.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
