Finance
UK's Thames Water says liquidity lifeline effective
Published by Global Banking & Finance Review®
Posted on February 21, 2025
1 min readLast updated: January 26, 2026
Quick Summary
Thames Water secures a £3 billion debt lifeline to avoid collapse, with funding extended until May 2026. An appeal by junior creditors is pending.
Thames Water Secures £3 Billion Debt Lifeline to Avoid Collapse
(Reuters) - Britain's Thames Water said the court-approved debt lifeline of 3 billion pounds would come into effect on Friday, warding off a collapse of the country's biggest water supplier.
The company will proceed with the initial implementation steps of the liquidity extension plan. The lifeline, provided by senior or class A creditors, will give Thames 1.5 billion pounds plus a possible further 1.5 billion pounds, extending its funding until May 2026.
However, the final steps of the transaction will not be taken until the outcome of an appeal lodged by its junior or class B creditors.
The hearing for the class B creditors' appeal will take place between March 11 and 13.
(Reporting by Prerna Bedi in Bengaluru; Editing by Shilpi Majumdar)
Key Takeaways
- •Thames Water secures a £3 billion debt lifeline.
- •The funding extends operations until May 2026.
- •Senior creditors provide initial £1.5 billion.
- •Class B creditors have lodged an appeal.
- •Appeal hearing scheduled for March 11-13.
Frequently Asked Questions about UK's Thames Water says liquidity lifeline effective
1What is the amount of the debt lifeline for Thames Water?
Thames Water has secured a court-approved debt lifeline of £3 billion.
2Who provided the liquidity extension plan?
The liquidity extension plan is provided by senior or class A creditors.
3What is the status of the appeal from class B creditors?
The final steps of the transaction will not occur until the outcome of an appeal lodged by class B creditors.
4When is the hearing for the class B creditors' appeal scheduled?
The hearing for the class B creditors' appeal is scheduled to take place between March 11 and 13.
