Thames Water secured an emergency £3billion loan as a firm owned by the Tory treasurer looks to buy a controlling stake in the embattled utility.
The UK’s biggest water supplier yesterday confirmed it has agreed a loan with its creditors to help it survive for at least a year following fears that it would run out of cash by Christmas.
The deal came as Castle Water, co-founded by property tycoon Graham Edwards, the Conservative Party treasurer, pressed ahead with plans to take a major stake in Thames with a view to float the company within three years.
The crisis-hit utility, which has a £16billion debt pile, was facing a potential government bailout if it failed to raise emergency cash from its existing creditors.
The funding will allow it to continue trading until October next year.
It revealed yesterday that it had just £500m left to continue operating. Thames will be charged interest of 9.75 per cent on the loan – far above market rates.
Chief executive Chris Weston said the funding will help to put Thames Water on a ‘more stable financial footing’.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
