Thames Water creditors have reportedly drawn up plans to lend the embattled supplier several billion pounds to allow more time for a restructuring of its debt.
A group holding hundreds of millions of pounds in Thames’ class B debt have proposed a £3 billion alternative liquidity package, according to Reuters.
This comes after the supplier to London warned previously it only had enough cash to last until May as costs of servicing some £15 billion worth of debt have soared in recent years.
Bloomberg reported separately that the junior creditors were planning a £1.5 billion package which would include interest of 8%.
Class A debt holders were also said to be planning an offer of finance, according to Bloomberg, as creditors raced to protect their interests in the utility.