Thames Water has seen a £3 billion loan approved by the High Court, offering London’s embattled supplier a lifeline after it had warned cash would run out by March 24.
Two tranches of £1.5 billion encompassing interest of 9.75% will be paid by creditors, with the first set to support operations until September this year.
The second will support an appeal to allow it to increase consumer bills by more than the 35% over the coming five years granted by regulator Ofwat in December.
Having faced the threat of renationalisation on struggles with its £16 billion debt pile, chair Adrian Montague dubbed the emergency loan a “significant milestone” for Thames.
“Critically, it enables the management team to continue progressing the turnaround,” he said.