Thames Water - comment

While the company's attempt to raise new money through a £3.3 billion right’s issue appears to be more process than prospect, its existing creditors stand ready to backstop its near-term funding needs by planning to offer £1 billion in funding. As there is no free lunch and certainly no business plan yet, it will rank above the existing debt stack as a “super senior” facility.  It will give the company breathing room to negotiate a more comprehensive restructuring which may involve a further new money injection or a debt-to-equity swap of its existing debt down the line.