Thames Water asks creditors for more time to help repay £20bn debt pile
Summary
Thames Water has proposed extending the repayment deadline for an unspecified portion of its £20bn debt from 2027 to March 2028. The company is seeking creditor support as it faces a cash shortfall and negotiations over a longer-term rescue, while the government considers options for its future.Key Facts
- Thames Water serves 16 million customers in London and the Thames Valley.
- The company’s shareholders walked away in 2024, leaving creditors with effective control.
- Creditors provided a separate £3bn lifeline in February last year.
- Thames Water has also requested a £2.4bn emergency loan.
- The company warned it could run out of cash by the end of 2026 or early 2027 without a longer-term deal.
- The government is weighing a creditor takeover, nationalisation or another form of state control.
- Ofwat recently allowed water companies to raise annual tariffs by an additional £3.4bn, on top of an average 36% increase agreed over five years to 2030.
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