There were concerns that the largest water supplier in the UK, which provides service to 16 million people, might have ran out of funds by Christmas.
However, the infusion of funds ensures its financial stability for at least the upcoming year, and potentially until the end of May 2026.
However, because the agreement with creditors entails a debt restructuring, it must be approved by the court. 9.75% interest will be charged on the amount.
Due to a financing dispute with industry regulator Ofwat, the cash-strapped company has been having trouble obtaining new capital from its current shareholders after they withdrew a £500 million investment that was pledged.
Ofwat is going to decide how much Thames Water is needed.
