THE UK’s biggest water company has been thrown a lifeline to stop it running out of cash by Christmas.
Troubled Thames Water yesterday said it had secured a loan of up to £3billion.
Thames Water said it had secured a loan of up to £3billion[/caption]
UK’s biggest water company was thrown the lifeline to stop it running out of cash by Christmas[/caption]
The new debt will give it the necessary breathing space to continue talks with other investors about injecting fresh cash into the business.
Chris Weston, the firm’s chief executive, said it was the “best option”.
If Thames Water — which supplies 16million households — does not find a long-term answer and runs out of cash, it will be transferred into temporary Government ownership.
Regulator Ofwat said safeguards are in place to protect water supplies.
Thames — which will be in almost £18billion of debt by the end of March — has asked existing creditors to put in £1.5billion to extend its resources to next October.
A further £1.5billion in loans can be accessed if it succeeds in its appeal against regulator Ofwat on how much it can put up bills.
Ofwat said in July the supplier could only raise bills by 22 per cent, but the firm wants a 53 per cent rise.
Castle Water, co-founded by Tory treasurer Graham Edwards, is involved in investment talks.
Infrastructure investor Brookfield, private equity giant Carlyle and Hong Kong billionaire Li Ka-shing, who controls Northumbrian Water, are also weighing it up.
Stuff bought
CASUAL clothing brand White Stuff has been bought by the South African owner of Hobbs, Whistles and Phase Eight.
White Stuff, which has 113 shops and 46 concessions in UK department stores, has gone to TFG London, part of Johannesburg-listed THE Foschin Group.
Natwest home win
NATWEST has received a boost from an increase in the number of buyers taking out home loans, encouraged by lower interest rates and cheaper mortgages.
Profits at the bank have jumped by more than a quarter to £1.7billion in the last three months, beating City predictions of £1.5billion.
Good week
Elon Musk’s fortune was boosted by a whopping £20bn[/caption]
ELON Musk after his fortune rose by £20billion in one day when the share price of TESLA jumped on bold sales forecasts.
Bad week
Mercedes-Benz chief Ola Kallenius revealed a profits slump[/caption]
OLA Kallenius, boss of Mercedes-Benz, which revealed that profits had slumped by over half.
