Published by Global Banking & Finance Review®
Posted on March 5, 2025
1 min readLast updated: January 25, 2026
Southern Water is negotiating with creditors to restructure its debt and avoid a crisis like Thames Water. A 900 million pound equity injection is planned.
(Reuters) - UK's Southern Water has entered into talks with creditors to reshape its capital structure and avoid debt woes similar to Thames Water, Bloomberg News reported on Wednesday citing people familiar with the matter.
The parties are discussing how to accommodate a 900 million pound ($1.16 billion) equity injection and what other tweaks may be necessary to stabilize the company's finances, the report added.
Southern Water had said in February it intended to raise the 900 million pound equity through its shareholders.
UK's largest water firm, Thames Water, narrowly avoided a collapse last month after its debt lifeline of 3 billion pounds was approved by the court, helping its liquidity issues.
Southern Water provides water and wastewater services to about 2.6 million customers across East and West Sussex, Kent, Hampshire and the Isle of Wight, according to its website.
Southern Water did not immediately respond to a Reuters request for comment.
($1 = 0.7767 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Krishna Chandra Eluri)
Southern Water is in talks with creditors to reshape its capital structure and avoid a debt crisis similar to Thames Water.
Southern Water intends to raise 900 million pounds (approximately $1.16 billion) through its shareholders.
Thames Water narrowly avoided a collapse after a court approved a 3 billion pound debt lifeline to help with its liquidity issues.
Southern Water provides water and wastewater services to about 2.6 million customers across East and West Sussex, Kent, Hampshire, and the Isle of Wight.
Southern Water did not immediately respond to a Reuters request for comment.
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