Thames Water Reaches Recapitalisation Deal with Class B Creditors, Writing Off About £1 Billion of Debt
Thames Water, Britain's biggest water utility, said on Friday it had reached an agreement with key Class B creditors on a proposed recapitalisation, securing support from holders of more than 60% of its junior Class B debt. Under the proposal, about £1 billion ($1.33 billion) of Class B debt would be written off, with those creditors receiving a recovery of roughly 5.9% through equity and other rights in the restructured company.
The utility said talks with the London & Valley Water creditor consortium, regulator Ofwat and other regulators were continuing, and that no decision had yet been taken on whether to proceed with the consortium's proposal.
Thames Water is saddled with about £20 billion of debt. On Thursday it said it needed to increase its emergency funding facility by £2.4 billion, to £5.4 billion, to keep operating into autumn 2027, having already drawn £2.65 billion of its existing £3 billion lifeline. Under its latest forecasts, the company could run out of money by the end of this year or early 2027 if the recapitalisation is not completed in time. Its senior creditors are pursuing a rescue involving debt writedowns and equity investment to avert temporary government control, and the consortium named proposed directors in August to oversee a decade-long overhaul if its plan is approved.
Source: GSM · USA (original Chinese edition)
Photo: 图：泰晤士水务总部大楼。图片来源：Jim Linwood，Wikimedia Commons，CC BY 2.0。Photo: Thames Water headquarters building. Image: Jim Linwood, via Wikimedia Commons, CC BY 2.0.
