Thames Water secures £3bn loan as Tory treasurer circles

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. 

Reprieve: The crisis-hit utility, which has a £16billion debt pile, was facing a potential government bailout

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’.

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