Thames Water has announced it is seeking fresh repayment terms, after confirming that it had access to around £1.6bn.

The move comes as part of a potential restructuring of the water supplier, with rumours of the firm being nationalised in order to save it.

In a statement, the UK’s biggest water supplier, Thames Water, said: "We have been engaging with financial stakeholder groups and their advisors since July 2024 and are assisting with information requests to enable financial stakeholder groups to better understand Thames Water's business plan and future funding needs."

As of 31 August 2024, Thames Water had £1.57bn of liquidity, consisting of £1.15bn in cash and cash equivalents and £420m of class A and class B undrawn committed facilities.

It also has £550m of undrawn reserve liquidity facilities which are available, should the firm enter standstill under its financing.

However, these resources are only set to last until May 2025, and the firm could be temporarily nationalised should these funds run dry.

The Guardian has reported that that these talks to ease the repayments terms including discussions with around 90 creditors, which represents around £10bn of its over £15bn debt pile.

The firm added: "We have been engaging with financial stakeholder groups and their advisors since July 2024 and are assisting with information requests to enable financial stakeholder groups to better understand Thames Water's business plan and future funding needs.

"We, together with our financial stakeholders, are considering options for the extension of our liquidity runway to enable time to complete a recapitalisation transaction. In parallel, we continue to undertake contingency planning as a matter of good corporate practice."

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