Company News
Creditors can't prevent Thames Water from using £3bn loan to pay fines - report
By Benjamin Chiou
Date: Thursday 05 Dec 2024
LONDON (ShareCast) - (Sharecast News) - Thames Water's largest creditor group has been unable to prevent the company from using an emergency loan to pay expected fines from Ofwat over the coming year, according to Sky News.
Sky News said on Thursday that a veto that was thought to have existed, which would have given the water group's primary lenders the ability to block payments of fines using a emergency loan, was removed during early talks with the regulator.
Thames Water's A lenders, who account for two-thirds of the company's £15bn debt pile, had hoped to have more say over how the company uses a £3bn emergency liquidity injection.
It is thought that the company may owe hundreds of millions of pounds in fines for environmental and performance failings over the next 12 months.
A term sheet published by Thames Water last month which said the company would use "reasonable endeavours" to engage with regulators to mitigate the financial impact of any potential fines due to non-compliance costs.
