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Thames Water warns cash reserves have eight-month runway

Published 20/09/2024, 07:33
© Reuters Thames Water warns cash reserves have eight-month runway

Proactive Investors - Thames Water has warned that its cash runway will expire in May 2025 unless a refinancing arrangement is not agreed with lenders.

“We’re looking into a range of options to extend our liquidity runway,” a company source told the Guardian. “This includes delaying when some money is due back to lenders.”

The beleaguered London water supplier faces nationalisation if it is unable to repay its more than £15 billion worth of debt on the book.

Thames Water said this morning that it has £1.57 billion of liquidity available which should see it through until next May.

It is also pursuing equity financing options.

“We, together with our financial stakeholders, are considering options for the extension of our liquidity runway to enable time to complete a recapitalisation transaction,” the company said in a statement.

“In parallel, we continue to undertake contingency planning as a matter of good corporate practice.”

Read more on Proactive Investors UK

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