Thames Water has warned that its cash reserves will be depleted by May 2025 unless a refinancing deal is reached with lenders.
“We are exploring various options to extend our liquidity runway,” a company source told the Guardian. “This includes postponing some repayment deadlines to lenders.”
The troubled London water supplier risks nationalisation if it does not address its more than £15 billion in outstanding debt.
Thames Water announced today that it has £1.57 billion in available liquidity, expected to sustain the company until next May.
Thames Water disburses £196 million in dividends while its debts exceed £15 billion.
The company is also exploring options for equity financing.
“We, along with our financial stakeholders, are evaluating ways to extend our liquidity runway to allow time for a recapitalisation transaction,” Thames Water said in a statement.
“At the same time, we are continuing contingency planning as part of good corporate practice.”
