Thames Water Seeks £3 Billion Funding to Avoid Insolvency Until October 2026

Oct 25, 2024, 07:41 AM

Thames Water is seeking to secure up to £3 billion in new funding from its creditors to avoid insolvency and stave off nationalisation. The beleaguered UK utility company has unveiled a proposal that includes a loan of at least £1.5 billion from its riskiest debt holders. The emergency fundraising drive is aimed at restructuring its significant debt and ensuring continued operations into 2025 and beyond, with a target to remain solvent until October 2026. Currently, 28% of customer bills go towards paying interest on existing debt, and this figure is expected to increase with the new financial measures. The company has faced criticism for extracting billions in shareholder dividends while now seeking additional funds to remain solvent.