Thames Water Requests £2.4 Billion to Avoid Bankruptcy
Thames Water has requested £2.4 billion from creditors to prevent insolvency by 2027 while facing political opposition to its proposed rescue plan.
Thames Water, the largest water utility in the United Kingdom, has requested an additional £2.4 billion from its creditors to avoid bankruptcy. The company warns it will exhaust its cash reserves by the end of 2026 or early 2027, having already used £2.65 billion of a previous £3 billion lifeline.
Serving 16 million customers, the utility is burdened by approximately £20 billion in debt. A proposed rescue plan includes a £4 billion loan write-off, but this depends on the Water Services Regulation Authority waiving pollution fines. The Labour-led government of the United Kingdom has indicated that waiving such fines is politically unpalatable.
While the company continues to seek a market-led solution, some politicians, including Andy Burnham, have advocated for public ownership or special administration. Creditors, consisting of institutional investors and American hedge funds, are expected to vote on the rescue proposals later this month.
