Finance
UK's struggling Thames Water seeks to facilitate recapitalisation plan
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Thames Water is negotiating a recapitalisation plan to manage its debt and avoid nationalisation, involving government and creditor agreements.
(Refiles to change Thursday to Wednesday in paragraph 3)
LONDON, Dec 4 (Reuters) - Britain's Thames Water on Thursday started to take the steps needed to book court dates and proceed with a recapitalisation plan led by senior lenders, as soon as they agree terms with the government on a deal.
The company said it had launched "parallel consent and waiver requests" with voting deadlines of December 18 for secured creditors and super senior creditors to facilitate the coming stages of its financial rescue.
Thames Water had said on Wednesday that it was taking longer than expected to secure a last-ditch rescue deal with creditors and the government which will allow it to avoid nationalisation, but that talks were positive.
The company, which has 16 million customers, has nearly 20 billion pounds of debt and a gearing level of 86% which has left it on the brink of financial collapse.
In the coming months, the company hopes the government, regulators and senior creditors can agree terms of a deal, which will require a court process to be finalised.
(Reporting by Sarah Young in London and Yamini Kalia in Bengaluru; Editing by Anil D'Silva and Paul Sandle)
Recapitalisation is a financial strategy used by companies to restructure their capital structure, often involving the issuance of new equity or debt to stabilize the company's finances and improve its balance sheet.
Gearing level refers to the ratio of a company's debt to its equity, indicating the degree to which a company is financed by debt versus its own funds. A high gearing level may suggest higher financial risk.
Financial collapse refers to a situation where a company or economy fails to meet its financial obligations, leading to bankruptcy or insolvency, often resulting in significant losses for stakeholders.
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