Finance
Britain’s Thames Water gets creditor nod for $506 million reserve funds
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(Reuters) -Britain’s Thames Water said on Monday creditors of its Class A debt approved a proposal to let it use about 400 million pounds ($505.88 million) of cash from its reserve accounts, providing a cash runway to February 2025.
(Reuters) -Britain’s Thames Water said on Monday creditors of its Class A debt approved a proposal to let it use about 400 million pounds ($505.88 million) of cash from its reserve accounts, providing a cash runway to February 2025.
The proposal is part of a broader 3-billion-pound funding lifeline the indebted utility announced last month to allow it to shore up its finances and avoid nationalisation.
The approval came as part of a financial restructuring at Thames Water, which has faced increasing pressure since March, when investors deemed it “uninvestible” and withheld new capital, prompting government contingency plans for special administration.
The latest cash runway will allow the utility “to continue with planned investment and maintenance of its infrastructure and meet customers’ needs and its environmental responsibilities,” it said.
($1 = 0.7907 pounds)
(Reporting by Aatrayee Chatterjee and Shashwat Awasthi in Bengaluru; editing by Alan Barona)
Financial restructuring refers to the process of reorganizing a company's financial structure to improve its stability and reduce debt. This often involves negotiating with creditors and altering the terms of existing debts.
Reserve funds are savings set aside by an organization to cover future expenses or emergencies. They provide financial security and help manage cash flow effectively.
A cash runway is the amount of time a company can continue to operate before it runs out of cash. It is calculated based on current cash reserves and monthly expenses.
A funding lifeline refers to financial assistance provided to a company to help it stabilize or recover from financial difficulties. This can include loans, investments, or other forms of capital.
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