Thames Water Seeks Recapitalization Amid Debt Crisis

Thames Water, the UK's largest water supplier, is striving to secure £3 billion in new equity to avert collapse amid a significant debt crisis. The company has deferred a planned 53% customer bill increase, awaiting regulator Ofwat's decision on a proposed 35% rise.

Thames Water, Britain's largest water supplier, is working diligently to secure new equity to avert potential nationalization. The company revealed its intentions to settle a £3 billion recapitalization deal by the second quarter as it faces an $18 billion debt crisis and public backlash.

The water supplier has paused its bid to increase customer bills by 53% while striving for financial restructuring. Thames Water is exploring equity proposals from six parties, aiming to finalize these transactions by the third quarter of this year.

Despite temporarily halting its push for higher bills, the supplier claims Ofwat's proposed 35% increase remains insufficient for its 16 million customers and environmental goals. Discussions with Ofwat and senior creditors are ongoing, with hopes of agreeing on sustainable recapitalization while exploring alternate transaction structures.

(With inputs from agencies.)