Thames Water asks for £2.4bn more to avoid going bust this year or early 2027
Source: The Guardian ·
Water company tells creditors it will not survive long enough to agree refinancing deal without more moneyThames Water has asked its creditors for another £2.4bn as the embattled water company comes close to running out of cash.The UK’s largest water company said on Thursday it needed another short-term cash injection because it would be unable to reach a longer-term deal to sort out its giant…
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Thames Water has asked its creditors for another £2.4bn as the embattled water company comes close to running out of cash. The UK’s largest water company said on Thursday it needed another short-term cash injection because it would be unable to reach a longer-term deal to sort out its giant debt pile before running out of cash by “the end of 2026 or the start of 2027”. Thames Water said in a statement to the stock market that it “does not expect to complete its recapitalisation process ahead of this date”, meaning it would run out of cash without creditors stumping up more. The utility company serves 16 million customers in London and the Thames valley. However, it has been on the brink of collapse for several years after it became overwhelmed by a debt pile that is now about £20bn. Its shareholders walked away, leaving the company under the effective control of its creditors while they work out a deal to avoid bankruptcy. The creditors gave Thames a £3bn lifeline in February last…