Feb 12 (Reuters) - Britain's Thames Water said on Thursday that its creditors are launching a process to review the allocation of about 823 million pounds ($1.12 billion) in additional funding for the
Thames Water Initiates Steps to Secure $1.12 Billion in New Debt
Thames Water's Financial Challenges and Solutions
LONDON, Feb 12 (Reuters) - Thames Water, Britain's biggest water supplier, said its creditors had agreed to start a process to lend it a further 823 million pounds ($1.1 billion) as work continues on a long-term plan to secure its financial survival.
Current Debt Situation
The company, which supplies 16 million customers, has become a symbol of the sector's failure, facing criticism over sewage pollution while wrestling with nearly 20 billion pounds of debt. It has spent three years fighting to avoid nationalisation.
Proposed Debt Write-off
A last-ditch proposal by a group of senior creditors to write off 7.5 billion pounds of debt remains on the table, but talks with the government and regulators on the terms of the deal are taking longer than expected.
Future Implications
In the meantime, creditors on Thursday agreed to begin the process of providing extra funding even though the debt write-off deal has not been finalised, one of the conditions for further lending.
"Thames Water Utilities Limited continues to work closely with stakeholders to secure a market-led solution, and following consultation with its creditors, hereby announces that the Super Senior Issuer will today launch a process to allocate about 823 million pounds," the group said in a statement.
The company has already drawn 1.43 billion pounds from an initial 1.5 billion-pound super-senior liquidity facility. Under a plan to keep it afloat while it works on a longer-term solution, it has the option to draw another 1.5 billion pounds in two tranches.
If a long-term restructuring agreement cannot be reached, Thames Water is expected to end up in the government's special administration regime, a form of temporary nationalisation.
($1 = 0.7327 pounds)
(Reporting by Sarah Young in Londom, Raechel Thankam Job in Bengaluru. Editing by Sonia Cheema and Mark Potter)
