(Bloomberg) -- Thames Water’s parent company may run out of money by April if shareholders don’t inject more equity into the debt-laden utility, its auditors have warned.
PricewaterhouseCoopers said there’s “material uncertainty” about whether the group can continue as a going concern because there are no firm arrangements in place to refinance a £190 million ($241 million) loan in one its the subsidiary companies.
Thames is expected to face scrutiny over its debt levels when it issues results on Tuesday, as investors question the embattled company’s financing structure. Parliament’s Environment, Food and Rural Affairs Committee said it’s considering calling executives in to explain whether they misled lawmakers about the company’s financial situation when they gave evidence in July.
“Recent revelations of Thames Water’s financial situation raise further concerns about the stability of the company’s finances,” Robert Goodwill, the panel’s chair, said in a statement on Friday.