A group of creditors offering a £1.5 billion ($1.95 billion) funding lifeline to Thames Water has urged other stakeholders to support its proposal, just a week before the deadline for participation.

The UK's largest water supplier has faced the threat of collapse since March, after its equity investors declined to inject new capital. This situation has led the government to prepare for a potential special administration regime for the utility company.

To ensure the survival of Thames Water for at least another year, the creditor group has proposed an initial £1.5 billion debt facility, with an additional £1.5 billion possible in the future. The company accepted this offer in late October.

This funding is crucial for Thames Water to proceed with a broader debt restructuring plan, paving the way for a future equity raise and recapitalization. However, the proposal requires approval from 75% of all debt classes, with an initial court hearing set for December 17.

The coordinating committee of the creditor group, which includes Abrdn, Apollo Global Management, Elliott Investment Management, Invesco, M&G, and PIMCO, confirmed its support in a statement.

"The coordinating committee of the creditor group has called on as many creditors as possible to support the company’s turnaround and restructuring efforts, and to consider participation in the new money facility," the statement read.

Meanwhile, a competing group of B note investors, who have put forward a different liquidity package, has criticized the current deal, labeling it "an extremely costly short-term loan."

The creditor group supporting the agreed deal represents over £12 billion of class A debt and includes more than 100 institutions, according to the statement. Photo by Jim Linwood, Wikimedia commons.