The creditor group offering Britain's Thames Water a 1.5 billion pound ($1.95 billion) funding lifeline urged others to back its plan on Monday, a week before a participation deadline.Britain's biggest water supplier has been on the brink of collapse since March,

Thames Water’s Class B bondholder group has presented a fully backstopped £3bn new money facility to the utility, after a rival faction invited all bondholders to participate in a facility that Thames is in locked into.

A battle has broken out between two groups who own Thames Water debt, as they race to keep the company afloat.

Thames Water, Britain's biggest water supplier, has lined up a financing lifeline of up to 3 billion pounds ($3.9 billion) to ensure its survival over the next year and beyond.

Thames Water, which supplies around 16 million households across London and the South East, is looking to raise £3billlion in emergency funding to avoid declaring insolvency.

The new creditors, including the £1.5bn backstoppers, have now been given the opportunity to lend at up to 12.75% at low risk, as their super senior position means they will be right at the front of the queue to be repaid if Thames Water goes bust.

As if Thames Water’s restructuring wasn’t complicated enough, banks that signed derivative agreements with the utility company have formed yet another group to negotiate with the beleaguered firm.

A group of Thames Water’s lenders has called on more firms to help foot the bill for a £1.5 billion cash injection designed to give the struggling water company a temporary lifeline.The cluster of investment giants including BlackRock,