Creditors Vote on Emergency £2.4bn Loan for Thames Water
London & Valley Water creditors will vote Thursday on a £2.4bn emergency loan to prevent Thames Water from running out of cash by 2027.
A consortium of creditors known as London & Valley Water will vote Thursday on an emergency £2.4bn loan for Thames Water. The funding would increase the utility's total facility to £5.4bn, a move intended to prevent the company from exhausting its cash reserves by late 2026 or early 2027.
Thames Water serves 16 million customers and carries approximately £20bn in debt. After shareholders exited in 2024, the company fell under the effective control of its creditors. While the consortium and Thames Water maintain that the financing will not increase customer bills, the campaign group We Own It claims the interest costs could add £40 to each household's bill.
Government official Andy Burnham is currently evaluating three potential paths for the utility: allowing a creditor-led takeover, nationalizing the company, or placing it into special administration. The outcome of the vote will determine if the company secures the immediate liquidity needed to avoid bankruptcy.
