Thames Water has secured support from creditors representing more than £12bn of secured debt for a proposed restructuring that would extend the maturity of billions of pounds of borrowing by a year, giving the embattled utility more time to negotiate a wider recapitalisation as rescue talks continue.

The company, which supplies around 16m customers across London and the south east, has entered into a transaction support agreement with senior creditors to extend the maturity dates and amortising payments of secured debt falling due in 2027 to March 2028.

The agreement would also extend the group's stable platform period until the same date, preserving financial covenant arrangements introduced during its interim restructuring in 2025.
Interest payments on super senior, Class A and Class B debt will continue as normal and will not be deferred, according to the firm. Thames Water said the proposed extension would provide additional time to agree a long-term financial rescue while supporting delivery of its AMP8 investment programme.

The transaction will be implemented through two interconditional restructuring plans under the Companies Act 2006, subject to creditor and court approval. A convening hearing is scheduled for 27 November, followed by creditor meetings on 17 December and a sanction hearing on 13 January 2027. The transaction could take effect in the week beginning 1 February.

The move comes as Thames Water continues discussions with the London & Valley Water consortium, which includes creditors led by US hedge fund Elliott Management and has proposed injecting more than £3bn of new equity alongside a debt facility in return for taking control of the business. The consortium has also sought changes to environmental investment requirements and regulatory penalties.

Thames Water said discussions with the consortium, Ofwat and other regulators remained ongoing, but stressed that no decision had been made to accept and implement its proposal. The company has debts exceeding £20bn and has been seeking a market-led rescue to avoid special administration. It said the proposed debt extension represented an important milestone towards securing a recapitalisation and improving its long-term financial resilience.

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