Thames Water has obtained support from three-quarters of its creditors for an emergency funding deal, which would give it a £3bn lifeline.
Britain’s biggest water company said today that creditors holding more than 75% of its class A debt – the least risky class of bonds in its debt pile – agreed to the deal.
The 75% threshold is the minimum needed for the plan to be approved by a UK court. Thames Water is aiming for a court date on 17 December.
The debt-laden utility hailed this as an “important milestone” and is hoping more bondholders will take part. Early voting suggests that the necessary consent levels will be achieved at the first bondholder meeting on 18 November.
Under the plan, Thames Water would initially get £1.5bn of funding with an annual interest rate of 9.75%, which the company says will keep it going until next October.
Asian shares are down again, amid a strong dollar and concerns over the incoming Trump administration’s trade policies. Today, traders await key inflation data from the US, which could be key to the Federal Reserve’s next interest rate decision.
Japan’s Nikkei is down by 1.7%, while Hong Kong’s Hang Seng index has slipped by 0.7% and South Korea’s Kospi slid by 2.6%.
Over the past week, we have seen "Trump trades" – traders betting on big government spending, lower taxes and higher tariffs once Donald Trump takes office. The dollar has jumped and Treasury yields rocketed since last week’s election.
Markets are now seeing a 62% chance of an interest rate cut at the Fed’s next meeting in December, down from 77% a week ago and 84% a month ago, according to CME Group.
The agenda • Noon GMT: US MBA mortgage applications for last week • 1.30pm GMT: US inflation for October (forecast 2.6%, previous 2.4%)
Sharing in our success. That’s a workplace pension with ProfitShare. This year, we are sharing £163 million of our profits with over 2 million eligible customers.
There’s no guarantee ProfitShare can be awarded every year. Speak to an expert.
You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396
AstraZeneca’s numbers are good but trouble in China could drag it down 
Curzon Cinemas has been sold for a ‘bargain’ £3.9m – is this good news for UK filmgoers? 
