Thames Water has firmed up plans to secure a £3 billion lifeline from creditors as the supplier grapples with a £15 billion debt pile.
Following reports creditors were lining up to offer cash for London’s struggling water supplier, Thames said on Friday that a consent process would be launched for the liquidity extension.
This would include an initial tranche of £1.5 billion from some creditors, followed by the rest once regulator Ofwat had confirmed spending and bill rules for the sector covering 2025 to 2030.
Maturities of all of Thames’ class A and B debt would also be extended by two years under the plan, after the firm warned it only had enough cash to last until May.
“Today's news demonstrates further progress to put Thames Water onto a more stable financial footing as we seek a long-term solution to our financial resilience,” chief executive Chris Weston commented.
Creditors holding some £6.7 billion worth of Thames’ debt were said to have backed the plan.