Thames Water Secures Last £677m Debt Lifeline as UK Mulls Nationalisation Options
Thames Water’s Financial Crisis and Government Response
LONDON, July 16 (Reuters) - Britain's Thames Water, battling to avoid nationalisation, said it would draw down £677 million ($915.3 million) of debt, the final tranche of the £3 billion debt lifeline package it secured from lenders in early 2025.
Company Warnings and Leadership Statements
Announcing results a day earlier, Thames Water's CEO warned the debt-stricken company could run out of money in November and said its future rests on decisions to be taken by Britain's incoming Prime Minister Andy Burnham.
Prime Minister’s Stance on Public Ownership
Burnham has previously argued that public ownership is the best option for Thames Water.
Government Rescue Plans and Alternatives
But in the meantime the government continues to consider a senior creditor-backed rescue plan. If it does not agree to it, Thames Water will end up in the government's Special Administration Regime, a form of temporary public ownership.
Details of the Senior Creditor Rescue Plan
Under the rescue plan from the senior creditor group, which is also behind the £3 billion lifeline, £9.4 billion of debt would be written off and £3.35 billion of new equity provided. Talks over the deal have been ongoing for months.
Potential for Further Funding
Thames Water CEO Chris Weston said he believed the creditor group, which includes Invesco, Elliott Management and Silver Point Capital, could provide further funding to ensure the survival of Thames beyond November if they believe the government will back the rescue deal.
Additional Information
($1 = 0.7396 pounds)
(Reporting by Sarah Young in London and Simone Lobo in Bengaluru; Editing by Maju Samuel and William James)
