(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)
