Thames Water is seeking to postpone debt repayments due in March 2027 for one year, giving the heavily indebted British water utility more time to negotiate a financial rescue.
The proposal would move the repayments to March 2028, but it has not taken effect. Creditors representing more than £12 billion in secured debt have signed a support agreement, Thames Water said, and the company is seeking further backing.
Thames Water has more than £20 billion in debt. It said the proposed delay would give it more time to agree on a recapitalization while continuing its AMP8 investment program, which is intended to improve outcomes for customers and the environment.
The Independent reported that controlling lenders had agreed to provide another £2.4 billion, supplementing an existing £3 billion emergency loan. The outlet said the funding would give Thames Water enough cash to operate until autumn 2027. The utility had earlier asked creditors to vote on changes linked to the additional funding.
Separately, creditor consortium London & Valley Water is discussing a £10 billion rescue proposal with the Water Services Regulation Authority (Ofwat) and the British government. Thames Water said no decision on advancing the proposal has been reached by its board, relevant investment committees, Ofwat or other regulators. Revised plans are expected to reach Ofwat before the end of 2026, The Independent reported.