Thames Water secures creditor support and launches £600m tranche

Thames Water said it has begun allocating an initial £600 million tranche of an enlarged emergency financing facility and secured creditor support for a one-year delay to repayments on more than £12 billion of secured debt. The measures are intended to extend the utility’s liquidity into autumn 2027 and give it more time to pursue a restructuring, but the funding remains conditional and its long-term ownership is unresolved.

The company said creditors consented to raise the maximum available under its emergency funding facility to £5.4 billion through a new lender, Thames Water Super Senior Upsize Issuer Plc. It has launched a process to allocate the initial tranche, equivalent to about $803 million. Thames Water said not all conditions for the new commitments had been met, including support for a lockup agreement tied to a second restructuring plan.

Separately, creditors representing more than £12 billion of secured debt signed a transaction support agreement, Thames Water said. The proposed extension would move repayments originally due in March 2027 to March 2028. Discussions are continuing to bring additional lenders into the agreement; the company has not described the...