Thames Water has entered into discussions with its financial stakeholders to release cash reserves, which would require majority creditor consent.
As at 31 August 2024, Thames Water had £1.57 billion of liquidity consisting of £1.15 billion of cash and cash equivalents (£0.38 billion of which is currently required to be placed in reserves under its financing) and £0.42 billion of Class A and Class B undrawn committed facilities. A further £0.55 billion of undrawn reserve liquidity facilities are available to support Thames Water should it enter standstill under its financing.
Thames said the combination of these resources provides a liquidity runway to May 2025.
The water company has announced that 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, and the company would enter standstill under its financing and the £0.55 billion undrawn reserve liquidity facilities and £0.38 billion of cash reserves would become available.
Thames Water has also said that, together with financial stakeholders, the company is considering options for the extension of its liquidity runway to enable time to complete a recapitalisation transaction.
