Thames Water Starts Creditor Talks to Avoid Cash Crunch (1)

Thames Water is working with a group of its creditors to try to avoid running out of money.

The UK’s biggest water and sewage company is exploring options to delay a cash crunch, including the release of reserves, according to a statement on Friday. It currently only has enough money to last until the end of May next year.

A group of creditors holding about £10 billion ($13.2 billion) of the firm’s debt is drawing up a rescue package that could involve injecting equity, but needs more time to work out a restructuring plan.

At the same time, Thames is ...