(Reuters) -Britain’s Thames Water said on Monday creditors of its Class A debt approved a proposal to let it use about 400 million pounds ($505.88 million) of cash from its reserve accounts, providing a cash runway to February 2025. The proposal is part of a broader 3-billion-pound funding lifeline the indebted utility announced last month […]
(Reuters) -Britain’s Thames Water said on Monday creditors of its Class A debt approved a proposal to let it use about 400 million pounds ($505.88 million) of cash from its reserve accounts, providing a cash runway to February 2025.
The proposal is part of a broader 3-billion-pound funding lifeline the indebted utility announced last month to allow it to shore up its finances and avoid nationalisation.
The approval came as part of a financial restructuring at Thames Water, which has faced increasing pressure since March, when investors deemed it “uninvestible” and withheld new capital, prompting government contingency plans for special administration.
The latest cash runway will allow the utility “to continue with planned investment and maintenance of its infrastructure and meet customers’ needs and its environmental responsibilities,” it said.
($1 = 0.7907 pounds)
(Reporting by Aatrayee Chatterjee and Shashwat Awasthi in Bengaluru; editing by Alan Barona)
