Sources indicate that Thames Water anticipates rolling over £2.1 billion in credit facilities by December.

Thames Water, grappling with over £15 billion in debt, faces the prospect of temporary nationalization if it collapses.

Currently, Thames Water has around £1.6 billion in available funds, which is projected to last until December unless new loan extensions are secured.

In light of its financial struggles, Thames Water's creditors are actively negotiating terms for new loans to provide necessary interim liquidity.

The company has come under fire for its sewage dumping practices and recently lost £500 million in emergency funding from shareholders due to a dispute with the regulator Ofwat over proposed bill increases.

Ministers are hopeful for a private market solution to Thames Water's financial restructuring, while officials are closely monitoring the situation.

To stabilize its finances and attract new ownership, Thames Water is seeking £3.25 billion, contingent on Ofwat's upcoming decision regarding bill increases.

Thames Water currently has access to a £530 million revolving credit facility, which is set to expire next week.

Auditors from PwC have expressed uncertainty about Thames Water's ability to continue operating over the next year due to a lack of committed liquidity.

The company is at risk of being unable to raise new debt as soon as next week, with a critical deadline of October 7 to secure financing extensions.

The potential nationalization of Thames Water could impose significant costs on taxpayers and present challenges for Chancellor Rachel Reeves.

Should Thames Water fail, it may enter a special administration regime, allowing for temporary nationalization to ensure the continuity of essential services.