Thames Water taps final debt lifeline

Britain's Thames Water, battling to avoid nationalisation, said it would draw down £677 million ($915.3 million) of ​debt, the final tranche of the £3 billion debt ‌lifeline package it secured from lenders in early 2025.

Announcing results a day earlier, Thames Water's CEO warned the debt-stricken ​company could run out of money in November ​and said its future rests on decisions to be ⁠taken by Britain's incoming Prime Minister Andy Burnham.

Burnham ​has previously argued that public ownership is the best ​option for Thames Water.

But in the meantime the government continues to consider a senior creditor-backed rescue plan. If it does not ​agree to it, Thames Water will end up ​in the government's Special Administration Regime, a form of temporary public ‌ownership.

Under ⁠the rescue plan from the senior creditor group, which is also behind the £3 billion lifeline, £9.4 billion of debt would be written off and £3.35 billion of new ​equity provided. ​Talks over ⁠the deal have been ongoing for months.

Thames Water CEO Chris Weston said he believed ​the creditor group, which includes Invesco, Elliott ​Management ⁠and Silver Point Capital, could provide further funding to ensure the survival of Thames beyond November if they ⁠believe ​the government will back the ​rescue deal.

-Reuters