Recasts, adds background throughout

LONDON, Feb 11 (Reuters) - Britain's Thames Water said it had received proposals from a number of parties as it seeks to raise new equity of over 3 billion pounds ($3.72 billion), part of a plan to stabilise its finances and fend off nationalisation.

The country's biggest water supplier, which has 18 billion pounds of debt and is fast running out of cash, is waiting for a court to approve a debt lifeline in the coming days, which will then allow it to focus on finding new investors.

Thames Water said in a statement on Tuesday the process, which started last summer, was ongoing.

"The company has received proposals from a number of parties and will now conduct a detailed assessment of each bid," it said.

Investment firm KKR and Octopus Energy's Kraken unit have all been linked as possible investors in recent media reports.

Kraken would team up with London-based asset manager Covalis and Suez, a waste management utility, while Castle Water, a Scotland-based water supplier, and Hong Kong-based CK Infrastructure have also been named as possible participants.

Complicating the picture is the price Thames Water is permitted to charge customers over the next five years.

The regulator has said it can hike bills by 35% over that time, lower than the 53% rise it says it needs. Thames Water has until Feb. 18 to launch an appeal against the regulator's decision.

($1 = 0.8060 pounds)

(Reporting by Sarah Young in London and Yadarisa Shabong in Bengaluru, Editing by Paul Sandle)

((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))