Thames Water creditors to vote on emergency £2.4bn loan as cash runs low
Source: The Guardian ·
Campaigners say costly new funds will lead to higher bills, which company deniesA group of creditors to troubled Thames Water are poised to vote on whether to grant an emergency £2.4bn loan to keep the company afloat, as campaigners raise concerns it could add £40 to each household’s bills in interest alone.A consortium of creditors, called London & Valley Water, will vote on Thursday on whether…
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A group of creditors to troubled Thames Water are poised to vote on whether to grant an emergency £2.4bn loan to keep the company afloat, as campaigners raise concerns it could add £40 to each household’s bills in interest alone. A consortium of creditors, called London & Valley Water, will vote on Thursday on whether to increase a funding facility for the debt-laden utility company to £5.4bn to keep it operating to autumn 2027. The company’s class A creditors, which include BlackRock, Elliott Management and Silver Point Capital, last year granted it a £3bn loan at a 9.75% interest rate. This month, Thames Water said it needed a further £2.4bn cash injection because it would be unable to reach a longer-term deal to sort out its extensive debt pile before running out of cash by “the end of 2026 or the start of 2027”. Thames Water has previously said that customers will not be on the hook for the interest on the £3bn loan, but it has almost run out of money and not paid down the debt.…