Thames Water Secures £3 Billion Lifeline Amid Financial Turmoil

Thames Water, facing financial distress and environmental scandal, is set to secure a £3 billion financing package to stabilize operations. The plan awaits court approval and involves new debt that could extend liquidity until 2026. The deal positions Thames Water to restructure its substantial debt and potentially raise new equity for long-term survival.

Thames Water, the largest water supplier in Britain, has orchestrated a lifeline financing plan worth up to £3 billion to ensure its continued operations amid financial troubles. The plan, crucial for the company's survival, now requires court approval.

Amid a scandal concerning sewage pollution in rivers, Thames Water faced the risk of a financial collapse that prompted a government standby for special administration. Chris Weston, CEO, expressed confidence that the debt package would stabilize finances, reducing the likelihood of worst-case outcomes.

Set for a court hearing on Dec. 17, the plan aims to secure an initial £1.5 billion loan tranche, extending its liquidity until October 2025. Furthermore, discussions are ongoing with creditors holding £12 billion in debt for interim liquidity, while Castle Water explores acquisition options. If successful, the package will enable comprehensive debt restructuring.

(With inputs from agencies.)