Thames Water is facing serious financial issues and may run out of cash by December 2024. The company plans to seek new equity to help manage these problems.
As of 31st August, Thames Water has £1.57 billion in total funds, but a lot of it is reserved and not available for use.
If the company can’t secure more funding or get approval from creditors to access reserves, they could face a financial standstill by the end of the year.
To address this, Thames Water will soon start looking for new investors.
The water supplier have also been talking with financial groups to better understand their funding needs and explore options to raise more money.
Thames Water said: “As contingency planning, we have entered into discussions with our financial stakeholders to release cash reserves under our financing.
“This would require majority creditor consent. If consent were not forthcoming and should it not be possible to draw the Class A and/or Class B facilities, available cash and cash equivalents would expire at the end of December 2024, whereupon we would enter standstill under our financing and the £0.55 billion undrawn reserve liquidity facilities and £0.38 billion of cash reserves would become available.”
