Headline: UNCAPTIONED: Thames Water Seeks £3bn Loan to Avert Financial Collapse
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Thames Water is seeking High Court approval for a £3 billion emergency loan to stabilize its finances and avoid running out of cash by spring. The loan marks the first step of a broader restructuring plan. On Thursday, regulator Ofwat will deliver its decision on water companies’ five-year business plans including how much they can increase consumer bills and returns for investors. This comes as the entire water industry faces mounting challenges: rising costs, sewage management, and climate pressures. Thames Water’s bondholders will provide the loan at 9.75% interest, with “super-senior” status, meaning repayment takes priority in case of default. If the judge approves, shareholders will meet next month for the final green light.
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Keywords: Current Affairs & Politics,Thames Water,seeks,3bn,loan,high court approval,avoid,running out of cash,spring 2025,regulator,Ofwat,increase,consumer bills,rising costs,sewage managament,repayment,default,bondholders,shareholders,green light,water industry,mounting challenges,climate pressures
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