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Thames Water has secured a £3bn emergency loan as a company owned by the Conservative treasurer seeks to buy a majority 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 it will run out of cash by Christmas.
The deal came as Castle Water, co-founded by property magnate Graham Edwards, treasurer of the Conservative Party, pressed ahead with plans to take a major stake in Thames with a view to taking the company public within three years.
The crisis-hit utility, which is £16bn in debt, faced a potential government bailout if it failed to raise emergency cash from its existing creditors.
The financing will allow it to continue trading until October of next year.
Reprieve: The crisis-hit utility, which is £16bn in debt, was facing a potential government bailout.
Yesterday it revealed it had just £500m left to keep running. Thames will be charged 9.75 per cent interest on the loan, well above market rates.
Chief executive Chris Weston said the funding will help put Thames Water on a “more stable financial footing”.
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