The creditors gave Thames a \u00a33bn lifeline in February last year<\/a> to try to see it through negotiations on a deal to cut its debts and inject more money. The creditors, collectively called the London & Valley Water company<\/a>, are led by a group of American hedge funds such as Elliott Management and Silver Point Capital, and institutional investors including BlackRock and M&G.<\/p>\n However, those talks have dragged on, and the water company has now drawn down \u00a32.65bn of the \u00a33bn, leaving it perilously close to running out of cash even as it carries out a series of expensive repairs and upgrades.<\/p>\n Thames said the extra cash would \u201cextend [\u2026] liquidity into autumn 2027 and allow [it] to continue to deliver its capital programme and deliver improvements for customers and the environment\u201d.<\/p>\n Thames Water\u2019s creditors have drawn up detailed proposals for a rescue plan that would involve them writing off \u00a39.6bn in loans. However, that plan hinges on Ofwat agreeing to let the company pay set penalties for several years upfront, and effectively creating a special regime for the company. That prospect has proven politically unpalatable for the Labour government.<\/p>\n Some Labour politicians and environmental campaigners called on Keir Starmer and then Andy Burnham to put Thames Water into special administration, a form of temporary government control while a new buyer is sought.<\/p>\n Burnham has pledged more public control of the UK\u2019s water industry, and has said that public ownership for Thames Water \u201cis what should be done\u201d<\/a>.<\/p>\n
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