Thames Water is running out of time to secure a rescue deal as its debt has risen to almost £20bn.
The UK’s largest water and waste company has returned to profit after increasing customer bills. in April.
The company has enough The cash will last until early next year, but if a deal is not approved it could collapse into a government-supervised administration.
A controversial restructuring plan by a group of its lenders is still the subject of intense discussions with regulator Ofwat and the Department of Environment.
Thames has the option of asking its creditors for another emergency cash injection that would last through 2026, but they would only agree to this if a bailout deal is approved.
The company has faced heavy criticism for struggling to repair leaks, stop wastewater spills and modernize aging infrastructure.
Regardless of what happens to Thames or who owns the company, its water services will continue as normal.
The company warned in its half-year results that there was still “material uncertainty” over whether the deal would close.
The government has already selected administrators to intervene if necessary.
The deal proposed by a consortium of major Thames creditors, called London & Valley Water, It would see them pump investments into the utility and pay off debt in exchange for more lenient performance targets.
they would do it They write off a quarter of the money they are owed, and a smaller group of loans from junior lenders are written off entirely.
The BBC understands the group is hopeful its plan will get an agreement in principle before the end of the year.
But the plan has many critics of the proposal. indulgence in Fines for pollution and spills.
London and valley water insists that allowing Thames to fall into administration will leave it in limbo, where its many problems will deteriorate.
Customer complaints have nearly doubled since last year, most of which concern bill increases.
Thames increased its bills by 40% in April. The number of clients with social rates increased, which were financed with the bills of other clients.
Chris Weston, chief executive of Thames Water, said in the company’s half-year results that “increases in bills have been significant this year and I recognize the difficulties this creates for many.”
“A market-driven solution clearly remains the best option for our customers, the environment, taxpayers and the economy,” he said.
In July he said it would take at least a decade to turn the company around.
In May it was fined £122.7m, the largest ever imposed by water industry regulator Ofwat, for breaching rules on wastewater spills and shareholder payments.
