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’.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
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.
Compare the best investing account for you
***
Read more at DailyMail.co.uk