Business · Companies · 7 hrs ago
Thames Water creditors back a one-year extension on debt repayments
Thames Water, the UK’s largest water company, serves 16 million people across London and the Thames Valley.
Creditors backing the plan would delay more than £12bn in repayments that are due in March 2027 until March 2028.
The company has more than £20bn in debt and has been at risk of collapse for several years.
The extension gives it more time to negotiate a rescue, after creditors also agreed to provide a £2.4bn emergency loan.
A group of creditors is discussing a proposed £10bn rescue with the government and regulator Ofwat, but no decision has been made to approve it.
The rescue talks will shape whether the company stays under private control or faces nationalisation or temporary government control while a buyer is sought.
The creditors are expected to put forward revised proposals to Ofwat before the end of the year.
Thames Water creditors representing more than £12 billion of secured debt have backed a plan to extend repayments due in March 2027 by one year.
The extension would give the struggling UK water company more time to agree a broader rescue deal.
Thames Water has more than £20 billion of debt and recently secured a further £2.4 billion in lender funding.
A consortium called London & Valley Water is discussing a proposed £10 billion rescue with regulators and the UK Government.
The rescue proposal faces criticism from lawmakers who have called for the company to return to public control.
- Who
- Thames Water creditors representing more than £12 billion of secured debt.
- What
- They backed a plan to extend repayments due in March 2027 by one year, to March 2028.
- When
- The plan was announced on November 9, 2026.
- Where
- The United Kingdom.
- Why
- The extension would give Thames Water more time to agree a rescue deal.
London & Valley Water rescue plan supporters
Supporters of public control
Rescue approach
London & Valley Water rescue plan supporters
London & Valley Water is working on a proposed £10 billion deal to avoid nationalisation.
Supporters of public control
The Efra Committee said the takeover plan should be ditched and called for Thames Water to return to public control.
Assessment of the proposal
London & Valley Water rescue plan supporters
The consortium is revising its plan after concerns were raised about customer and environmental protections.
Supporters of public control
The committee said the plan did not have the interests of the public, the company or the environment at heart.
A previous rescue deal with US private equity giant KKR collapsed.
Former environment secretary Emma Reynolds said she did not believe London & Valley Water’s £10 billion plan went far enough to protect customers or the environment.
The Efra Committee said London & Valley Water’s takeover plans should be ditched.
Thames Water announced that its controlling lenders had agreed to provide another £2.4 billion in funding.
Thames Water announced that creditors representing more than £12 billion of secured debt had signed up to a debt repayment extension agreement.
- Debt due for repayment
- More than around £12 billion
- Repayment extension
- From March 2027 to March 2028
- Thames Water total debt
- More than £20 billion
- Additional lender funding
- £2.4 billion
- Proposed rescue deal
- £10 billion
- Consortium
- London & Valley Water
3 sources
What people are saying
The signing of the transaction support agreement is an important milestone in Thames Water’s progress towards a recapitalisation.
A process is ongoing to facilitate further creditor accessions to the transaction support agreement.
The Company remains focused on securing a market-led solution which delivers long-term financial resilience and improvements for customers and the environment as soon as practicable.