Thames Water thrown £3billion lifeline to stop it running out of cash by Christmas
THE UK’s biggest water company has been thrown a lifeline to stop it running out of cash by Christmas.
Troubled Thames Water yesterday said it had secured a loan of up to £3billion.
The new debt will give it the necessary breathing space to continue talks with other investors about injecting fresh cash into the business.
Chris Weston, the firm’s chief executive, said it was the “best option”.
If Thames Water — which supplies 16million households — does not find a long-term answer and runs out of cash, it will be transferred into temporary Government ownership.
Regulator Ofwat said safeguards are in place to protect water supplies.
Thames — which will be in almost £18billion of debt by the end of March — has asked existing creditors to put in £1.5billion to extend its resources to next October.
A further £1.5billion in loans can be accessed if it succeeds in its appeal against regulator Ofwat on how much it can put up bills.
Ofwat said in July the supplier could only raise bills by 22 per cent, but the firm wants a 53 per cent rise.
Castle Water, co-founded by Tory treasurer Graham Edwards, is involved in investment talks.
Infrastructure investor Brookfield, private equity giant Carlyle and Hong Kong billionaire Li Ka-shing, who controls Northumbrian Water, are also weighing it up.
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